The economic value of a forested catchment with timber, water and carbon sequestration benefits

This paper examines the optimal management strategy for a forested catchmen t that yields timber, water and carbon sequestration benefits. The Faustman n multiple rotation model is extended to allow for the maximisation of the net present value of these timber and non-timber benefits. The model is app lied to the Thomson Catchment in Central Gippsland, Victoria. Carbon seques tration benefits are modelled via total stand biomass accumulation. The cos t of carbon release back into the atmosphere upon logging is estimated as a function of rotation age using an adjusted pulpwood/sawlog ratio. The allo wance for both non-timber benefits is found to lengthen the optimal rotatio n, in a large range of cases to infinity. (C) 2001 Elsevier Science B.V. Al l rights reserved.