The Economic Value of a Forested Catchment with Timber, Water and Carbon Sequestration Benefits
This paper examines the optimal management strategy for a forested catchment that yields timber, water and carbon sequestration benefits. The Faustmann multiple rotation model is extended to allow for the maximisation of the net present value of these timber and non-timber benefits. The model is applied to the Thomson Catchment in Central Gippsland, Victoria. Carbon sequestration benefits are modelled via total stand biomass accumulation. The cost of carbon release back into the atmosphere upon logging is estimated as a function of rotation age using an adjusted pulpwood/sawlog ratio. The allowance for both non-timber benefits is found to lengthen the optimal rotation, in a large range of cases to infinity.
|Date of creation:||2000|
|Note:||This paper has now been published in: Creedy, J. and Wurzbacher, A.D. (2001), The Economic Value of a Forested Catchment with Timber, Water and Carbon Sequestration Benefits, Ecological Economics, 38, pp. 71-83.|
|Contact details of provider:|| Postal: Department of Economics, The University of Melbourne, 4th Floor, FBE Building, Level 4, 111 Barry Street. Victoria, 3010, Australia|
Phone: +61 3 8344 8560
Fax: +61 3 8344 6899
Web page: http://fbe.unimelb.edu.au/economics
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, vol. 31(3), pages 409-411, March.
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- G. Cornelis van Kooten & Clark S. Binkley & Gregg Delcourt, 1995. "Effect of Carbon Taxes and Subsidies on Optimal Forest Rotation Age and Supply of Carbon Services," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(2), pages 365-374.
- D Demeritt & D Rothman, 1999. "Figuring the Costs of Climate Change: An Assessment and Critique," Environment and Planning A, , vol. 31(3), pages 389-408, March.
- S. Rama Chandra Reddy & Colin Price, 1999. "Carbon Sequestration and Conservation of Tropical Forests Under Uncertainty," Journal of Agricultural Economics, Wiley Blackwell, vol. 50(1), pages 17-35. Full references (including those not matched with items on IDEAS)
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