Economics of carbon sequestration in slash pine (Pinus elliottii) plantations

There is growing concern over the accumulation of “greenhouse gases,” particularly carbon dioxide (CO₂), and associated global warming. As a result of global warming, sea levels may rise, causing inundation of some coastal areas and the earth's environment may be altered affecting biodiversity and food security in many regions. It is widely recognized that forests play an important role in the global carbon cycle by sequestering and storing carbon, enabling the switch from more energy-intensive materials such as steel to forest products, and facilitating the substitution of biomass fuels for fossil fuels.; In this dissertation a Hartman model is used to investigate the economics of sequestering carbon in slash pine (Pinus elliotii) plantations in the southeastern coastal plain of the U.S. The model assumes landowners are paid a subsidy for sequestering carbon during stand growth and must pay carbon taxes for emissions of CO₂ from the decay of harvest waste and forest products after harvest. From this model I determine how private slash pine plantation owners would adjust the optimal rotation age or the harvest age. I also determine the impact of a carbon subsidy and tax policy on land expectation values, timber supply and the amount of carbon sequestered. The model was then extended to include the risk of catastrophic mortality and silvicultural treatments such as fertilizer, herbicides and bedding. Finally the potential of slash pine plantations to produce biofuel is investigated.; Results from this research show that a carbon subsidy and tax policy would have varying effects on the management of a forest stand depending on the price of carbon and the silvicultural options available to the landowner. Such a policy would also significantly increase land expectation values thus possibly increasing forests on the extensive margin. Risk tends to dampen the impact of a carbon subsidy and tax policy on forest management and land expectation values. Biofuel production does not impact forest management or land expectation values to a great extent but would mitigate significant amounts of carbon emissions. Overall the results suggest that the impact of a carbon subsidy and tax policy would be greater on the extensive margin by increasing land devoted to forestry than on the intensive margin through stand management.