Journal of Forest Economics > Vol 11 > Issue 3

Can wood storage be profitable? French experience after the windstorms in 1999

Sandrine Costa, , Lisette Ibanez,
Suggested Citation
Sandrine Costa and Lisette Ibanez (2005), "Can wood storage be profitable? French experience after the windstorms in 1999", Journal of Forest Economics: Vol. 11: No. 3, pp 161-176.

Publication Date: 01 Dec 2005
© 0 2005 Sandrine Costa, Lisette Ibanez
JEL Codes:L730L800Q120


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In this article:
French experience 
Cost analysis 
Benefit analysis 
Concluding comments 


The windstorms in 1999 have thrown down about three times the French annual roundwood harvest. In order to reduce the amount of roundwood coming on the French market, the French government promoted storage by funding it partly. An economic analysis has been carried out to estimate the profitability of wood storage. In the first part, the cost calculation distinguishing recurring and non-recurring costs is exposed. Data highlighted scale economies for investment costs, which are more important for long-term sites. On average, windfall has been stored for 3.5 years for a global unit cost of 17.2€/m3. In the second part, we propose a profitability calculation method. From an individual point of view, storage has not been profitable. Governmental aids have played down the global losses. Still more than 85% of created storage area had negative outcomes. In most cases, wood has not found 1999 prices which explain our results.