The effect of carbon revenues on the rotation and profitability of loblolly pine plantations in East Texas

Ching Hsun Huang, Gary D. Kronrad

Research output: Contribution to journalArticle

14 Scopus citations

Abstract

This study determined the profitability and financially optimal thinning and final harvest rotation of loblolly pine (Pinus taeda) managed exclusively for timber production or for dual products of timber production and carbon sequestration. The results suggest that 1) depending on landowner's alternative rate of return, the inclusion of carbon revenues in forest management may shorten or prolong the optimal timber-carbon rotation length, compared to the optimal rotation that maximizes timber value only; 2) the effect of carbon revenues on the optimal rotation length and the percentage gain in soil expectation value is larger on low-productivity sites than on high-productivity sites, and is larger for high interest rates than for low interest rates; and 3) low-productivity, unprofitable sites may become profitable when carbon revenue is included and optimized together with the timber revenue.

Original languageEnglish (US)
Pages (from-to)21-29
Number of pages9
JournalSouthern Journal of Applied Forestry
Volume30
Issue number1
DOIs
StatePublished - Feb 2006

Keywords

  • Carbon sequestration
  • Forest management
  • Optimal management regime
  • Soil expectation value

ASJC Scopus subject areas

  • Forestry
  • Plant Science

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