Forest land consolidation and its effect on climate

•The climate effects of forest land consolidation are identified.•The increased carbon storage in a project is valued through shadow prices.•The study shows considerable benefits to climate change mitigation.

Land use changes and forests both play an important role in combating climate change. The climate effects of forest land consolidation have, however, not been studied in detail. As such, this study identifies a number of possible climate effects of forest land consolidation. To specify these, the increased carbon storage in the Pahkakoski land consolidation project (Finland) due to increased forest growth is valued through substitution costs. The results show that the value of the increased carbon storage in the project area is approximately 750 000 euros, or €153/ha. This emanates from the increased growth due to remedial drainage and from the increased forested area. The result is, however, sensitive to changes in the shadow price of carbon. Likewise, the study recognises a need for studies concerning the total climate effect of measures, such as remedial drainage that may also release carbon from the ground. While the overall effects of forest land consolidation are difficult to estimate with current knowledge, this article highlights the potential of land consolidation to combat climate change.