Effects of carbon markets on the optimal management of slash pine (Pinus elliottii) plantations

Stainback, GA Alavalapati, JRR

SOUTHERN JOURNAL OF APPLIED FORESTRY 29:1 27-32

Global climate change is a growing concern among many policy makers. This concern has led to substantial interest in using forests as one option to mitigate climate change. In this article, the effect of internalizing carbon sequestration benefits on the optimal management of slash pine plantations is explored. Results suggest that without carbon bene is, it is optimal to use herbicide and bedding but not fertilizer because the increase in timber yield does notjustib7 the high cost offertilizer. With carbon benefits, however, the use of fertilizer becomes profitable. Thus a carbon market would likely induce plantation owners to increase their management intensity, which may in turn also have significant impacts on the amount of carbon sequestered. For example, by allowing the management regime to vary in addition to rotation age, the amount of carbon sequestered decreased from 204 to 164 metric tons of carbon per acre when carbon prices increased from $40 to $200 per metric ton. Thus increasing carbon sequestration on the intensive margin may be less feasible than previously supposed, but increasing on the extensive margin may be highly practicable.

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