Optimizing management regimes for carbon storage and other benefits in uneven-aged stands dominated by Norway spruce, with a derivation of the economic supply of carbon storage

This study sought optimal sustainable management regimes of uneven-aged Norway spruce-dominated stands with multiple objectives. The criteria were financial returns, CO2 sequestration and diversity of tree size and species. At prevailing timber prices, harvest and transport costs, and interest rates, uneven-aged management for timber alone was most profitable with a 5-year cutting cycle. Lengthening the cutting cycle to 20 years decreased the net present value from timber by 10%, but raised the carbon storage by 21%, the tree species diversity by 32%, and the tree size diversity by 24%. Maximizing CO2 sequestration induced an almost pure spruce stand. A compromise policy maximized CO2 storage, while maintaining a rate of return on the capital of standing trees equal to the interest rate. A supply curve for CO2 storage was derived, showing how much forest owners would be willing to sequester as a function of the price of CO2. Maximizing the NPV from combined CO2 storage and timber production showed complementarity of CO2 storage and timber production for up to NOK 300 Mg-1 of CO2, and sustained, though lower, timber production at higher CO2 prices.