Economics of carbon sequestration under fluctuating economic environment, forest management and technological changes: An application to forest stands in the southern United States

Andres Susaeta, Sun Joseph Chang, Douglas R. Carter, Pankaj Lal

Research output: Contribution to journalArticle

11 Scopus citations

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.

Original languageEnglish
Pages (from-to)47-64
Number of pages18
JournalJournal of Forest Economics
Volume20
Issue number1
DOIs
StatePublished - 1 Jan 2014

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Keywords

  • Carbon sequestration
  • Harvest age
  • Land expectation value
  • Price of carbon

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