Effects of carbon sequestration rewards on forest management—An empirical application of adjusted Faustmann Formulae
This paper assesses the effects that different economic instruments to reward carbon sequestration services might have on forest management, especially on the optimal rotation period. Three different carbon crediting schemes are considered, which are based on different accounting rules. The schemes are different with respect to the question whether and how to account for carbon emissions. The forest valuation method used for calculation is based on the land expectation value (LEV), which was adjusted for the value of carbon sequestration services.