Afforestation in Alberta: A Case Study Evaluating the Economic Potential of Hybrid Poplar Plantations Given Bio-Energy and Carbon Sequestration Consideration

The investment viability of afforestation of hybrid poplar plantations on private land in the Province of Alberta was explored. Carbon credits from afforestation were included in the simulations. The base case showed relatively little potential for afforestation in the province. Substantial changes to the price for pulpwood and the price for carbon were required to initiate land use change on a large scale across the Province. The most important factor affecting land use was the permanent conversion factor that discounts carbon sequestration values because sequestration with wood fiber is not permanent. Land use change was the least sensitive to changes in carbon prices, assuming a permanent conversion factor of 0.1.