How should a forest carbon rent policy be implemented?

Lintunen, Jussi; Laturi, Jani; Uusivuori, Jussi

doi:10.1016/j.forpol.2016.04.005

Cited by 33 publications

(44 citation statements)

References 8 publications

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“…The other scheme is called carbon rent policy and is based on periodic rents paid on forest carbon stocks plus an end payment at the time of harvest, rewarding the contribution to carbon storage in products. Lintunen et al (2016) show that these two policy schemes yield similar market outcomes under perfect capital markets and rational expectations over carbon prices. Furthermore, they suggest that carbon rent policy could be more easily integrated into an emission trading scheme.…”

Section: Policy Implicationsmentioning

confidence: 90%

“…However, they also show how these distortions can be avoided through taxation. Lintunen et al (2016) assess the policy feasibility of two different carbon payment schemes. The other is the carbon subsidy scheme also studied in this thesis, where carbon sequestration is rewarded with subsidies that have to be paid back when the carbon is released back to the atmosphere.…”

Section: Policy Implicationsmentioning

confidence: 99%

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On the economics of boreal Scots pine management under climate change

Pihlainen¹

2017

Diss. For.

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To be presented, with the permission of the Faculty of Agriculture and Forestry of the University of Helsinki, for public criticism in room K110, C-building, Latokartanonkaari 5, Helsinki on 15 th December 2017, at 12 o'clock noon. This dissertation aims to develop the economics of even-aged Scots pine (Pinus sylvestris L.) management. In our economic-ecological model, a detailed process-based forest growth model is connected to an economic description of stand management. The process-based growth model is able to describe forest growth in management regimes and climate conditions previously not experienced, because it applies causal relationships and feedbacks instead of statistical correlations. Optimization is carried out with an effective general pattern search algorithm. The optimized variables include rotation length, initial stand density, and the timing, type, intensity, and number of thinnings. Essential model details include the quality pricing of timber and detailed harvesting cost functions. Integration of carbon subsidy systems into the model enables the determination of the economically optimal carbon storage with various carbon price levels. Finally, the growth model is extended to include a direct link between climate change and tree growth, to optimize stand management in a changing climate.The dissertation thesis is composed of a summary section and three articles, which produce a coherent and comprehensive picture on the optimal stand management of Scots pine in the relevant growth conditions of Fennoscandia. The results demonstrate the necessity to simultaneously optimize all stand management variables, and the advantages of having a detailed model. Optimal stand management is shown to be sensitive to growth conditions, interest rate, and management objective, along with the design of the carbon subsidy system and the subsidy level. The stand-level analysis is additionally extended to the national level, and adapting forest management was found to potentially be a cost-efficient method for carbon abatement in Finland. Furthermore, the optimal adaptation of stand management in a changing climate remarkably improves the economic surplus from forestry.

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Section: Policy Implicationsmentioning

confidence: 90%

Section: Policy Implicationsmentioning

confidence: 99%

On the economics of boreal Scots pine management under climate change

Pihlainen¹

2017

Diss. For.

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“…The deficiency of capital return rate per standing cubicmeter is greater than an appropriate rent. It has recently been shown that a carbon sequestration trade policy is equivalent to a carbon rent policy [27]. The same treatment, abbreviated and with somewhat less restrictive boundary conditions, is given in Eqs.…”

Section: Discussionmentioning

confidence: 99%

“…Unbiased carbon sequestration trade would require a huge initial investment; correspondingly mostly carbon rent procedures are practically feasible [27]. We will here present a brief derivation of the equivalency of the two principles of subsidies, however adopting boundary conditions possibly less restrictive than those of Lintunen et al [27].…”

Section: Methodsmentioning

confidence: 99%

“…The last issue in this section of methods regards carbon trade and carbon renting. It has been recently shown that policies based on carbon rent are equivalent to policies based on carbon sequestration subsidies and taxies [27]. Unbiased carbon sequestration trade would require a huge initial investment; correspondingly mostly carbon rent procedures are practically feasible [27].…”

Section: Methodsmentioning

confidence: 99%

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Carbon forestry compensation on estate level

Kärenlampi¹

2020

Preprint

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The expense of carbon sequestration in terms of capital return deficiency is investigated at estate level, in the case of a fertile boreal estate dominated by spruce forest. Thinnings from below result as a high expense of increased rotation age, thinnings from above as a small expense. The expense of increased timber stock is greater than any proportional carbon rent based on present carbon prices. Application of non-proportional carbon rent is proposed.

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Solving Conflicts among Conservation, Economic, and Social Objectives in Boreal Production Forest Landscapes: Fennoscandian Perspectives

Mönkkönen

Burgas

Eyvindson

et al. 2018

Ecosystem Services From Forest Landscapes

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This chapter discusses challenges and possibilities involved in preserving biological diversity and the diversity of ecosystem services in the boreal zone and yet at the same time maintaining intensive timber extraction in boreal forests. Our focus is on Fennoscandian forests at the landscapes level, and we consider economic, social and ecological in the sustainability of forest management. We provide an outlook to boreal forest ecosystems and their history, and an overview of the forestry practices and policies that aim to ensure multi-functionality of Fennoscandian forests, i.e. diversity of efforts on sustaining biodiversity, timber production and other ecosystem services from forest landscapes. We review the current scientific understanding management effects on the structure and dynamics of the forest at different spatial, and the consequent repercussions on forest biodiversity and ecosystem services. Evidence suggests that many ecosystem services and biodiversity are in conflict with intensive timber production in boreal forests. We therefore present methods for assessing conflicts among alternative forest uses and for finding solutions for conflicts. We conclude the chapter by providing insights for future management aiming at sustainability from economic, ecological and social perspectives.

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How should a forest carbon rent policy be implemented?

Cited by 33 publications

References 8 publications

On the economics of boreal Scots pine management under climate change

On the economics of boreal Scots pine management under climate change

Carbon forestry compensation on estate level

Solving Conflicts among Conservation, Economic, and Social Objectives in Boreal Production Forest Landscapes: Fennoscandian Perspectives

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