Microeconomics of Nitrogen Fertilization in Boreal Carbon Forestry

Abstract

The nitrogen fertilization of boreal forests is investigated in terms of microeconomics as a tool for carbon sequestration. The effects of nitrogen fertilization’s timing on the return rate on capital and the expected value of the timber stock are investigated within a set of semi-fertile, spruce-dominated boreal stands using an inventory-based growth model. Early fertilization tends to shorten rotations, reducing timber stock and carbon storage. The same applies to fertilization after the second thinning. Fertilization applied ten years before stand maturity is profitable and increases the timber stock, but the latter effect is small. The fertilization of mature stands, extending any rotation by ten years, effectively increases the carbon stock. Profitability varies but is increased by fertilization instead of merely extending the rotation.