The Effect of Empirical Log Yield Observations on Carbon Storage Economics

Petri P Kärenlampi

doi:10.3390/f11121312

Abstract

An empirical model for log yield from trees is established and applied in microeconomics of carbon storage in a boreal spruce estate. The transition from pulpwood to sawlogs is a smoother function of stem diameter in the empirical data, in comparison to literature values. Correspondingly, the value transition of trees along with increasing size is gentler. Due to price premiums of sawlogs from clearcuttings, all economically feasible treatment schedules terminate in clearcutting. Best capital return rates are gained with two heavy thinnings from above before clearcutting. Present carbon emission prices allow moderate carbon storage increment if the increment is compensated by proportional carbon rent. Doubling the present carbon prices would allow strong carbon storage increments if compensated by carbon rent. Application of nonproportional carbon rent is proposed.

Highlights

Boreal forests constitute a potentially significant carbon sink
We find from Equation (6) that the expected value of capital return rate within an estate generally evolves in time as the probability density of stand ages evolves
In any 30-month annualized capital return rate, there is no integration over the site lifespan, neither is any clearcutting price premium or clearcutting harvesting pricing considered

Summary

Introduction

Boreal forests constitute a potentially significant carbon sink. A particular benefit of boreal regions is significant carbon storage in the soil. It has been approximated that the amount of soil carbon may exceed the carbon storage in living biomass [1,2,3,4]. Living biomass produces the litter, resulting in soil carbon accumulation. The rate of carbon storage depends on the rate of biomass production on the site. The biomass production rate, in turn, is related to the amount of living biomass [2,5,6,7]

Methods

Results

Discussion

Conclusion