Valuation and production possibilities on a working forest using multi-objective programming, Woodstock, timber NPV, and carbon storage and sequestration

ABSTRACT

This study analyzes the trade-off between net present value (NPV) of timber resources, and carbon sequestration and storage for a working forest, the Hofmann Forest in North Carolina, USA. Multi-objective optimization is used to determine the production possibility curves showing the relationship between NPV and carbon. We then perform a sensitivity analysis to explore alternative management strategies. For carbon yields we used aboveground pools: branches, leaves, tops and bole as estimated by the Forest Vegetation Simulator (FVS) and LOBDSS using the California Carbon Market Protocols, including product carbon. Timber yields of sawtimber, chip-n-saw and pulpwood were estimated by LOBDSS for planted stands less than 49 years of age, and FVS was used for all natural stands and planted stands 49 years and over. Our results reveal that NPV opportunity costs associated with increasing carbon sequestration at Hofmann Forest are less than the current California carbon market price.

KEYWORDS:

• Multi-objective
• carbon
• net present value
• Woodstock
• Hofmann Forest

Acknowledgements

This research was conducted at the North Carolina State University, Raleigh, NC 27695, USA.

Disclosure statement

No potential conflict of interest was reported by the authors.

Notes

1 CRT Carbon Credits, Your Vercarbon Guide; Climate action Reserve Approved to Register Offset Projects for California’s Cap-and-Trade Program, Business Wire (December 14, 20012).

2 Timber Mart-South Eastern regional averages for the state of North Carolina for the 1st quarter of 2015 (http://www.timbermart-south.com/).

Additional information

Funding

We would like to thank REMSOFT for use of the Spatial Planning System; The North Carolina Natural Resources Foundation for use of the Hofmann Forest, its GIS and database; Buck Vaughan and the Conservation Fund for helpful insights into carbon projects; and finally Laura Parker, of American Forest Management for guidance on use of the Spatial Planning System.