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A generalized Faustmann model with multiple carbon pools
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DOI：10.1016/j.forpol.2024.103363.png)
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In the context of carbon neutrality, it is crucial to accurately account for forest carbon sequestration, including living tree biomass, dead organic matter, and harvested wood products. This study develops a generalized Faustmann model, including carbon sequestration in multiple carbon pools under different assumptions of the decay modes of harvested wood products. Then, a comparative statics analysis of key parameters of dead organic matter and the harvested wood product carbon pool is conducted. The results show that the effect of the carbon pool parameters of dead organic matter and harvested wood products' on the optimal rotation usually depends on the economic environment, such as the discount rate and the time of their changes. Results of our case study indicate that considering the carbon sequestration in multiple carbon pools increases land expectation value and forest land carbon stocks. Meanwhile, different harvest wood products types and decay modes affect the optimal rotation differently. Our results demonstrate that different carbon accounting methodologies should be established for different types of harvested wood products, such as exponential decay for paper and paperboard and chi-square decay for solid wood products. It is also necessary to expand the outlets of harvested wood products in wood-based building materials and extend their half-lives.
Keyword:
Generalized Faustmann model
Carbon sequestration benefits
Dead organic matter
Harvested wood products
Decay mode
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