Carbon sequestration, optimum forest rotation and their environmental impact

Due to their large biomass forests assume an important role in the global carbon cycle by moderating the greenhouse effect of atmospheric pollution. The Kyoto Protocol recognises this contribution by allocating carbon credits to countries which are able to create new forest areas. Sequestrated carbon provides an environmental benefit thus must be taken into account in cost-benefit analysis of afforestation projects. Furthermore, like timber output carbon credits are now tradable assets in the carbon exchange. By using British data, this paper looks at the issue of identifying optimum felling age by considering carbon sequestration benefits simultaneously with timber yields. The results of this analysis show that the inclusion of carbon benefits prolongs the optimum cutting age by requiring trees to stand longer in order to soak up more CO2. Consequently this finding must be considered in any carbon accounting calculations. (C) 2011 Elsevier Inc. All rights reserved.