Optimal forest rotation age under efficient climate change mitigation

Tommi Ekholm

Forest Policy and Economics, 2016, vol. 62, issue C, 62-68

Abstract: This paper considers the optimal rotation of forests when the carbon flows from forest growth and harvest are priced with an increasing price. Such evolution of carbon price is generally associated with economically efficient climate change mitigation, and would provide incentives for the land-owner for enhanced carbon sequestration. For an infinitely long sequence of even-aged forest rotations, the optimal harvest age changes with subsequent rotations due to the changing carbon price. The first-order optimality conditions therefore also involve an infinite chain of lengths for consecutive forest rotations, and allow the approximation of the infinite-time problem with a truncated series of forest rotations.

Keywords: Optimal forest rotation; Carbon pricing; Climate change mitigation (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (13)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:forpol:v:62:y:2016:i:c:p:62-68

DOI: 10.1016/j.forpol.2015.10.007

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