Economics of carbon sequestration under fluctuating economic environment, forest management and technological changes: An application to forest stands in the southern United States
Document Type
Article
Publication Date
1-1-2014
Abstract
This study presents a model that determines the effect of current and future payments for carbon sequestration, proportion of wood that sequesters carbon in long-lived product and landfills, and amount of carbon in the wood, on the optimal current forest harvest age. Increased current and future prices of carbon would lead to a longer and shorter harvest age, respectively. Higher current prices of carbon could increase the supply of carbon at a decreasing rate due to longer harvest ages. Moderate prices of carbon would encourage landowners to maintain standing timber. Policies focused then on stimulating landowners to hold timber on forestlands may not necessarily imply higher amounts of sequestered carbon. Increased future values of carbon could imply a reduction of the current supply of carbon. © 2013 Department of Forest Economics, Swedish University of Agricultural Sciences, Umeå.
Publication Source (Journal or Book title)
Journal of Forest Economics
First Page
47
Last Page
64
Recommended Citation
Susaeta, A., Chang, S., Carter, D., & Lal, P. (2014). Economics of carbon sequestration under fluctuating economic environment, forest management and technological changes: An application to forest stands in the southern United States. Journal of Forest Economics, 20 (1), 47-64. https://doi.org/10.1016/j.jfe.2013.08.001