Carbon credits and management of Scots pine and Norway spruce stands in Finland

Carbon storage in forests can be increased to reduce carbon dioxide in the atmosphere. We use a joint production model of timber production and carbon sequestration to analyse the financially optimum silvicultural strategies for Scots pine and Norway spruce at the stand level in Finland. This study expands the earlier analyses by taking into account thinnings as measures to increase carbon stocks in forests, in addition to lengthening the rotation age. The results indicate that, in joint production, both the growing stock level and rotation length are increased, compared to pure timber management. The results show clearly the importance of including thinnings in the analysis. For Scots pine stands, a major share of the increase in average carbon storage during the rotation period was obtained by modifying thinnings while lengthening the rotation age had a minor impact, with carbon prices of 10 and 20 €/t CO2. On the other hand, in the case of Norway spruce, delaying the clearcutting provided most of the increase in average carbon storage. The carbon tax/subsidy programme was found to increase discounted net revenues to the forest owners considerably. The carbon tax/subsidy programme had a positive impact on the average timber yield in a fully regulated forest framework due to the considerable increase in the yield of sawlog, whereas the yield of pulpwood was somewhat decreased.