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The cost of increasing carbon stock in a coastal Douglas-fir stand by extending forest rotation

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Title: The cost of increasing carbon stock in a coastal Douglas-fir stand by extending forest rotation
Author: Prilesky, Vojtech
Subject Keywords Carbon;Stock;Forest;Rotation;Extension;Cost;Log;Price;Discounting;Productivity;Harvest;Douglas-fir;Net present value;Viable;Risk
Issue Date: 2011-04-08
Publicly Available in cIRcle 2011-08-18
Series/Report no. University of British Columbia, Forestry Undergraduate Essays/Theses, 2010 winter session, FRST 497
Abstract: The effect on climate of extending forest rotations is similar to that of afforestation/reforestation projects. This study attempts to model the opportunity cost that would have to be covered by carbon revenues (ie. „carbon cost‟) to make delayed forest harvest economically viable. This is considered for an even-aged Douglas-fir (Pseudotsuga menziesii) stand in coastal British Columbia. Sensitivity of carbon costs to parameters such as site productivity, log prices, discount rates, and risk buffers are examined. Results find that carbon costs for all scenarios rise with greater rotation extensions but eventually “plateau” in the future. Sites of higher productivity have higher carbon costs. Higher log prices also cause carbon costs to rise. Higher discount rates cause carbon costs to rise more quickly with length of rotation extension, but plateau carbon costs do not vary greatly between discount rates. Risk buffers cause carbon costs to rise more than the proportion of the risk buffer. Assuming a market price of $5.00/tCO2e, rotation extensions could only be viable for scenarios with depressed log prices. Short rotation extensions have poor economy of scale and would likely be unable to cover enough of a project‟s fixed costs to make it feasible.
Affiliation: Forestry, Faculty ofForest Resources Management, Department of
URI: http://hdl.handle.net/2429/36761
Peer Review Status: Unreviewed
Scholarly Level: Undergraduate

This item appears in the following Collection(s)

  • FRST 497
    This collection contains undergraduate papers from FRST 497: Graduating Essay or Technical Report

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