Financial Analysis of Potential Carbon Value over 14 Years of Forest Restoration by the Framework Species Method
Abstract
:1. Introduction
2. Materials and Methods
2.1. Study Site and Forest Restoration Method
2.2. Carbon Accumulation in Trees and Soil
2.3. Financial Modeling
3. Results
3.1. Tree- and Soil-Carbon Value
3.2. Restoration Costs
3.3. Financial Modeling
3.4. Comparison with Maize Farming
4. Discussion
4.1. Carbon
4.2. Costs and Revenue
4.3. Comparison with Maize Farming
5. Conclusions
Author Contributions
Funding
Institutional Review Board Statement
Informed Consent Statement
Data Availability Statement
Acknowledgments
Conflicts of Interest
References
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No. | Species | Successional Status | Leafing |
---|---|---|---|
1 | Bischofia javanica | Pioneer | Deciduous |
2 | Erythrina subumbrans | Pioneer | Deciduous |
3 | Gmelina arborea | Pioneer | Deciduous |
4 | Heynea trijuga | Climax | Semi-deciduous |
5 | Hovenia dulcis | Climax | Deciduous |
6 | Melia toosendan | Pioneer | Deciduous |
7 | Nyssa javanica | Pioneer | Evergreen/ semi-deciduous |
8 | Prunus cerasoides | Pioneer | Deciduous |
9 | Sapindus rarak | Climax | Deciduous |
10 | Sarcosperma arboreum | Climax | Evergreen |
11 | Spondias axillaris | Pioneer | Deciduous |
Forest Age (Since Start of Restoration) | Tree Carbon Stock 1 | Increment | Increment Potential Cash Value 2 |
---|---|---|---|
(Year) | (tC/ha) | (tC/ha) | (USD) |
0 | 1.73 | - | - |
5 | 18.04 | 16.31 | 3950.39 |
10 | 60.75 | 42.71 | 10,344.65 |
14 | 144.81 | 84.06 | 20,359.90 |
Total (0–14 Y) | 143.08 | 34,654.95 |
Year Plots Planted> | 2007 | 2002 | 1998 | |||
---|---|---|---|---|---|---|
Plot age (years since restoration initiated) | 2 | 10 | 7 | 15 | 11 | 19 |
Kavinchan et al. (2015a) (tC/ha)—down to 2 m depth (in 2009) | 254.40 | 251.14 | 161.82 | |||
This study (tC/ha)—0–50 cm depth extrapolated down to 2 m using Kavinchan et al. [17] equations (in 2017) | 261.77 | 255.75 | 170.39 | |||
Soil-carbon accumulation over 8 years (tC/ha) (measured) | 7.37 | 4.61 | 8.57 | |||
Average annual soil-carbon increase (measured) (tC/ha/year) | 0.92 | 0.58 | 1.07 | |||
Litter-carbon accumulation over 8 years (modeled) | 1.11 | 3.84 | 10.73 | |||
Average annual litter-carbon increase (measured) (tC/ha/year) | 0.14 | 0.48 | 1.34 | |||
Ratio soil-carbon:litter-carbon | 6.65 | 1.20 | 0.80 |
Field Establishment Costs | 100% Tree Planting | Tree Planting: ANR 50:50 | 100% ANR | ||||||
---|---|---|---|---|---|---|---|---|---|
By budget items | Y1 | Y2 | TOTAL | Y1 | Y2 | TOTAL | Y1 | Y2 | TOTAL |
Planting stock | 1838.00 | 0.00 | 1838.00 | 919.00 | 0.00 | 919.00 | 0.00 | 0.00 | 0.00 |
Materials and equipment | 315.37 | 129.03 | 444.40 | 253.80 | 129.03 | 382.83 | 192.23 | 129.03 | 321.26 |
Transportation | 145.50 | 23.94 | 169.44 | 99.55 | 23.94 | 123.49 | 53.60 | 23.94 | 77.54 |
Labor | 1033.30 | 549.05 | 1582.35 | 874.00 | 546.56 | 1420.56 | 714.71 | 544.07 | 1258.78 |
Quantifiable transaction costs | 54.42 | 20.61 | 75.03 | 54.42 | 20.61 | 75.03 | 54.42 | 20.61 | 75.03 |
Total field costs by budget item | 3386.59 | 722.63 | 4109.22 | 2200.77 | 720.14 | 2920.91 | 1014.96 | 717.65 | 1732.61 |
By task | |||||||||
Pre-planting site survey | 13.07 | 0.00 | 13.07 | 13.07 | 0.00 | 13.07 | 13.07 | 0.00 | 13.07 |
Site preparation | 297.40 | 0.00 | 297.40 | 244.10 | 0.00 | 244.10 | 190.80 | 0.00 | 190.80 |
Tree planting (+initial ANR tasks) | 2346.20 | 0.00 | 2346.20 | 1218.59 | 0.00 | 1218.59 | 90.98 | 0.00 | 90.98 |
Maintenance (weeding, fertilizer) 2 years | 693.97 | 704.38 | 1398.36 | 693.97 | 704.38 | 1398.36 | 693.97 | 704.38 | 1398.36 |
Monitoring—2 years | 35.94 | 18.24 | 54.19 | 31.04 | 15.75 | 46.80 | 26.14 | 13.27 | 39.41 |
Total field costs by task | 3386.59 | 722.63 | 4109.21 | 2200.77 | 720.14 | 2920.91 | 1014.96 | 717.65 | 1732.61 |
10% contingency for unanticipated transaction costs | 338.66 | 72.26 | 410.92 | 220.08 | 72.01 | 292.09 | 101.50 | 71.77 | 173.26 |
SUBTOTAL | 3725.25 | 794.89 | 4520.14 | 2420.85 | 792.15 | 3213.00 | 1116.45 | 789.42 | 1905.87 |
INTEREST | 1160.59 | 672.39 | 284.40 | ||||||
GRAND TOTAL (USD) | 5680.72 | 3885.39 | 2190.27 | ||||||
Costs per tC sequestered (USD/tC) | 10.34 | 7.07 | 3.99 | ||||||
Costs per tree established (USD/tree) | 1.83 | 1.25 | 0.71 |
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Jantawong, K.; Kavinchan, N.; Wangpakapattanawong, P.; Elliott, S. Financial Analysis of Potential Carbon Value over 14 Years of Forest Restoration by the Framework Species Method. Forests 2022, 13, 144. https://doi.org/10.3390/f13020144
Jantawong K, Kavinchan N, Wangpakapattanawong P, Elliott S. Financial Analysis of Potential Carbon Value over 14 Years of Forest Restoration by the Framework Species Method. Forests. 2022; 13(2):144. https://doi.org/10.3390/f13020144
Chicago/Turabian StyleJantawong, Kanlayarat, Nuttira Kavinchan, Prasit Wangpakapattanawong, and Stephen Elliott. 2022. "Financial Analysis of Potential Carbon Value over 14 Years of Forest Restoration by the Framework Species Method" Forests 13, no. 2: 144. https://doi.org/10.3390/f13020144