Natural carbon capture and storage (NCCS): Forests, land use and carbon accounting

The use of forests as natural carbon capture and storage sinks is considered by introducing carbon sequestration benefits’ accounting in a multi-vintage partial equilibrium land-use model, under different carbon price scenarios. The consequences to timber and land markets and to the profile of the carbon sequestration time path are examined in the short-run, long-run, and transition. Following IPCC, three carbon accounting methods are considered: the carbon flow, the ton-year crediting and the average storage. A full proof of long-run optimality of steady-state forest is provided. Numerical simulations are performed and results discussed illustrating the setup's potential.

► We extend a multivintage forest land allocation model to carbon accounting.
► Without imposing terminal conditions, we prove the optimality of steady-state forest.
► The results are driven by changes in age class structure and land use allocation.
► Key insights emerge from links between timber, land markets, and carbon sequestered.
► Numerical simulations also provide new insights of the transition period.