The economics of timber and bioenergy production and carbon storage in Scots pine stands

Abstract

We optimize timber and bioenergy production combined with carbon storage in Scots pine (Pinus sylvestris L.) stands, using an ecological-economic model. Forest growth is specified with a highly detailed process-based growth specification, and optimization is based on an efficient generalized pattern search algorithm. The optimized variables are rotation length, initial stand density, and the number, intensity, timing, and type of thinnings. The carbon pool includes all aboveground biomass (including dead trees) and timber products. The analysis includes the comparison of different carbon subsidy systems. The results are presented for the most relevant site types and thermal zones in Finland. Carbon storage increases the optimal rotation length, number of thinnings, and initial density at all forest sites. Carbon storage effects on stand density and harvests are strongest at poor sites. Timber output increases with carbon price. High natural mortality in our results implies notable carbon storage in dead trees and a positive contribution to biodiversity. The stand-level analysis is extended to a cost-efficient national-level carbon storage plan.

Cost of turning forest residue bioenergy to carbon neutral

“…The energy wood price was the current stumpage price that the forest owner gets from selling forest residues for energy and in line with the recent price statistics (Natural Resource Institute Finland, 2015). In previous studies the price has often been the acquisition price of energy wood at the energy production facility (Pihlainen et al, 2014;Ranius et al, 2014), and therefore higher than in this study.…”

“…Previous studies provide more general insights to welfare aspects related to forest bioenergy and the effects of carbon pricing on optimal stand management (e.g. Bjørnstad and Skonhoft, 2002;Niinimäki et al, 2013;Pihlainen et al, 2014). According to Bjørnstad and Skonhoft (2002) inclusion of the social value of carbon sequestration increases rotation lengths but requires subsidies for the forest owner.…”

“…According to Bjørnstad and Skonhoft (2002) inclusion of the social value of carbon sequestration increases rotation lengths but requires subsidies for the forest owner. In the studies by Niinimäki et al (2013) and Pihlainen et al (2014) the forest owner was subsided for sequestering carbon. These studies conclude that in addition to postponing of final felling, also initial densities, changes in thinning strategies and postponing thinnings are important when considering economically efficient carbon storage.…”

“…Examples of strategies to increase forest carbon stocks include, extending rotation lengths (Cooper, 1983;Kaipainen et al, 2004;Liski et al, 2001), changes in initial stand density and thinning strategies (e.g. Niinimäki et al, 2013;Pihlainen et al, 2014) and forest fertilization (Boyland, 2006). Extending forest rotation period allows trees to grow larger and forests to accumulate more litter and soil organic matter, whereas forest fertilization increases tree growth and litter input to the soil from living biomass and forest thinnings.…”

On the economics of continuous cover forestry

“…This approach has been applied in even-aged stands in several different contexts, with only timber production (Faustmann 1849, Martin and Ek 1981, Tahvonen et al 2013) and with additional benefits outside timber production (Hartman 1976, van Kooten 1995, Pihlainen et al 2014. The approach to economically optimal continuous cover forestry is at its core the same; starting from any initial stand, optimize the harvests so that the net present value of future revenues is maximized (Haight 1985).…”