The Effect of Empirical Log Yield Observations on Carbon Storage Economics

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 premium 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.

Growth and Yield of Three Boreal Tree Species

“…A third significant difference to the recent investigations [9,13,14] is the amortization of regeneration expenses. As the treatment was based on observations at age 30-45 years, regeneration was assumed to result as the young stand where the first harvesting was due.…”

“…Recent investigations have demonstrated a need for a greater than 50 mm resolution in the tree size description [13,14]. It is not too complicated to modify the growth model from the size resolution of 50 mm to 25 mm.…”

“…Then, any taper curve is used to determine a geometric estimate for the volumes of sawlogs/plywood logs on the one hand, and pulpwood on the other. Such volumes, however, are not realistic, due to quality variations [23,13,14,22]. The sawlog/plywood log volume is corrected using the correction factors by Mehtätalo [23].…”

“…As the preferences of the society do not necessarily unify with the preferences of a private forest owner, compensations systems for complying with society goals have been proposed [10,11]. The necessary level of compensation has been recently discussed [9,12,13,14].…”

“…Recent treatments, based on the normal forest principle, have been based on observations collected from spruce-dominated forests of age 30-45 years, where first thinning has been due [9,13,14]. A few such stands have been used as normal stands, describing a few normal forests.…”