Optimizing management regimes for carbon storage and other benefits in uneven-aged stands dominated by Norway spruce, with a derivation of the economic supply of carbon storage

Abstract

This study sought optimal sustainable management regimes of uneven-aged Norway spruce-dominated stands with multiple objectives. The criteria were financial returns, CO₂ sequestration and diversity of tree size and species. At prevailing timber prices, harvest and transport costs, and interest rates, uneven-aged management for timber alone was most profitable with a 5-year cutting cycle. Lengthening the cutting cycle to 20 years decreased the net present value from timber by 10%, but raised the carbon storage by 21%, the tree species diversity by 32%, and the tree size diversity by 24%. Maximizing CO₂ sequestration induced an almost pure spruce stand. A compromise policy maximized CO₂ storage, while maintaining a rate of return on the capital of standing trees equal to the interest rate. A supply curve for CO₂ storage was derived, showing how much forest owners would be willing to sequester as a function of the price of CO₂. Maximizing the NPV from combined CO₂ storage and timber production showed complementarity of CO₂ storage and timber production for up to NOK 300 Mg⁻¹ of CO₂, and sustained, though lower, timber production at higher CO₂ prices.

Keywords:

• Management
• economics
• optimization
• carbon storage
• supply
• diversity
• Norway

Acknowledgements

The preparation of this paper was supported in part by the USDA Forest Service Southern Research Station through a cooperative research agreement with Joseph Buongiorno.