Benefit-cost analysis of forest carbon for landowners: An illustration based on a southern pine plantation

Using a hypothetic southern pine plantation in the state of Georgia United States, benefit-cost analysis forest carbon is conducted for landowners voluntary market. With values being defined by marginal growth, it found that inclusion into objective function usually leads to longer rotations and higher total profits. In our baseline analysis, rotation age increases four years when both timber are considered. Thus, can benefit from trading additional be fixed forests. Landowners’ decision on most sensitive discount rate prices. When higher, future cash flows become less valuable optimal shortens. prices exceed price large margin, value dominates approaches Faustmann rotation. Therefore, with prices, will result additionality. Finally, economic uncertainty incorporated making, results tend sustained albeit additionality slightly reduced.