EconPapers    
Economics at your fingertips  
 

A generalized Faustmann model with multiple carbon pools

Zhihan Yu, Zhuo Ning, Han Zhang, Hongqiang Yang and Sun Joseph Chang

Forest Policy and Economics, 2024, vol. 169, issue C

Abstract: 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.

Keywords: Generalized Faustmann model; Carbon sequestration benefits; Dead organic matter; Harvested wood products; Decay mode (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S138993412400217X
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:forpol:v:169:y:2024:i:c:s138993412400217x

DOI: 10.1016/j.forpol.2024.103363

Access Statistics for this article

Forest Policy and Economics is currently edited by M. Krott

More articles in Forest Policy and Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().

 
Page updated 2025-05-25
Handle: RePEc:eee:forpol:v:169:y:2024:i:c:s138993412400217x