Abstract

Forest management affects the quantity of CO2 emissions in the atmosphere through carbon sequestration in standing biomass, carbon storage in forest products and production of bioenergy. The main question studied in this paper is whether forest carbon sequestration is worth increasing at the expense of bioenergy and forest products to achieve the EU emissions reduction target for 2050 in a cost-efficient manner. A dynamic cost minimisation model is used to find the optimal combination of carbon abatement strategies to meet annual emissions targets between 2010 and 2050. The results indicate that forest carbon sequestration is a low-cost abatement method. With sequestration, the net present costs of meeting EU carbon targets can be reduced by 23%. (C) 2016 Department of Forest Economics, Swedish University of Agricultural Sciences, Ume (a) over circle. Published by Elsevier GmbH. This is an open access article under the CC BY-NC-ND license

Keywords

Bioenergy; Cost-efficiency; Dynamic optimisation; EU; Climate policy; Forest carbon sequestration

Published in

Journal of Forest Economics
2016, volume: 24, pages: 82-105
Publisher: Elsevier

Authors' information