The economic value of a forested catchment with timber, water and carbon sequestration benefits

John Creedy, Anke Leroux

Research output: Contribution to journalArticleResearchpeer-review

81 Citations (Scopus)

Abstract

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.
Original languageEnglish
Pages (from-to)71 - 83
Number of pages13
JournalEcological Economics
Volume38
Issue number1
Publication statusPublished - 2001
Externally publishedYes

Cite this