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Forests 2015, 6(10), 3594-3613; doi:10.3390/f6103594

Estimating Values of Carbon Sequestration and Nutrient Recycling in Forests: An Application to the Stockholm-Mälar Region in Sweden

Department of Economics, Swedish University of Agricultural Sciences, Box 7013, 75007 Uppsala, Sweden
Academic Editor: Damian C. Adams
Received: 15 July 2015 / Revised: 24 September 2015 / Accepted: 29 September 2015 / Published: 13 October 2015
(This article belongs to the Special Issue Ecosystem Services from Forests)
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Abstract

We calculate values of forest carbon sequestration and nutrient recycling applying the replacement cost method. The value is then determined as the savings in costs by the replacement of more expensive abatement measures with these ecosystem services in cost-effective climate and nutrient programs. To this end, a dynamic optimization model is constructed, which accounts for uncertainty in sequestration. It is applied to the Stockholm-Mälar region in southeast Sweden where the EU 2050 climate policy for carbon emissions and the Baltic Sea action plan for nutrient discharges are applied. The results show that the value of carbon and nutrient sequestration can correspond to approximately 0.5% of the region’s gross domestic product, or 40% of the value of productive forest. The largest part of this value is attributed to carbon sequestration because of the relative stringency in targets and expensive alternative abatement measures. However, sequestration is uncertain because of stochastic weather conditions, and when society has a large risk aversion for not attaining climate and nutrient targets, the values of the forest carbon and nutrient sequestration can approach zero. View Full-Text
Keywords: forest carbon and nutrient sequestration; values; replacement cost method; uncertainty; Stockholm-Mälar region forest carbon and nutrient sequestration; values; replacement cost method; uncertainty; Stockholm-Mälar region
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. (CC BY 4.0).

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Gren, I.-M. Estimating Values of Carbon Sequestration and Nutrient Recycling in Forests: An Application to the Stockholm-Mälar Region in Sweden. Forests 2015, 6, 3594-3613.

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