Financial Analysis of Potential Carbon Value over 14 Years of Forest Restoration by the Framework Species Method
The carbon storage value of forest restoration, by the framework species method (FSM) in northern Thailand, was assessed for trees (using a partial harvesting technique) and soil and compared with restoration costs. Forest carbon accumulation amounted to 143.08 tC/ha in trees and 8.56 tC/ha in soil...
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| Format: | Article |
| Language: | English |
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MDPI AG
2022-01-01
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| Series: | Forests |
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| Online Access: | https://www.mdpi.com/1999-4907/13/2/144 |
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| author | Kanlayarat Jantawong Nuttira Kavinchan Prasit Wangpakapattanawong Stephen Elliott |
| author_facet | Kanlayarat Jantawong Nuttira Kavinchan Prasit Wangpakapattanawong Stephen Elliott |
| author_sort | Kanlayarat Jantawong |
| collection | DOAJ |
| description | The carbon storage value of forest restoration, by the framework species method (FSM) in northern Thailand, was assessed for trees (using a partial harvesting technique) and soil and compared with restoration costs. Forest carbon accumulation amounted to 143.08 tC/ha in trees and 8.56 tC/ha in soil over 14 years, with a combined value of USD 27,173.63 (net present value (NPV), discounted at 2.85%/year)) (at the current European carbon credit (EUA) price of 55.98 EUR/tCO<sub>2</sub> = 242.21 USD/tC). Restoration costs increased from 2190.27 to 5680.72 USD/ha with declining pre-existing natural regeneration or 3.99–10.34 USD per ton of sequestered CO<sub>2</sub>. Profits over 14 years ranged in NPV from 22,215.45 to 25,157.04 USD/ha, breaking even from just over 4 years to just under 7, respectively. In contrast, profits from maize cultivation (a major regional deforestation driver) averaged 96.25 USD/ha/year, or just 1347.53 USD/ha over 14 years. Consequently, forest restoration could become a financially attractive alternative land use, provided an open, transparent, carbon market is created. Therefore, this study supports creation of a forest-carbon trading system in Thailand, to incentivize forest restoration and fire prevention, increase farmers’ incomes, reduce smoke-related public health problems, protect watersheds, and conserve biodiversity. |
| first_indexed | 2024-03-09T21:57:17Z |
| format | Article |
| id | doaj.art-059727dffe3a4e54b570154245a8d46b |
| institution | Directory Open Access Journal |
| issn | 1999-4907 |
| language | English |
| last_indexed | 2024-03-09T21:57:17Z |
| publishDate | 2022-01-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Forests |
| spelling | doaj.art-059727dffe3a4e54b570154245a8d46b2023-11-23T19:54:57ZengMDPI AGForests1999-49072022-01-0113214410.3390/f13020144Financial Analysis of Potential Carbon Value over 14 Years of Forest Restoration by the Framework Species MethodKanlayarat Jantawong0Nuttira Kavinchan1Prasit Wangpakapattanawong2Stephen Elliott3Program in Environmental Sciences, Environmental Science Research Center, Faculty of Science, Chiang Mai University, Chiang Mai 50200, ThailandFaculty of Sciences and Agricultural Technology, Rajamangala University of Technology Lanna Phitsanulok, Phitsanulok 65000, ThailandDepartment of Biology and Environmental Science Research Center, Faculty of Science, Chiang Mai University, Chiang Mai 50200, ThailandForest Restoration Research Unit, Environmental Science Research Center, Department of Biology, Faculty of Science, Chiang Mai University, Chiang Mai 50200, ThailandThe carbon storage value of forest restoration, by the framework species method (FSM) in northern Thailand, was assessed for trees (using a partial harvesting technique) and soil and compared with restoration costs. Forest carbon accumulation amounted to 143.08 tC/ha in trees and 8.56 tC/ha in soil over 14 years, with a combined value of USD 27,173.63 (net present value (NPV), discounted at 2.85%/year)) (at the current European carbon credit (EUA) price of 55.98 EUR/tCO<sub>2</sub> = 242.21 USD/tC). Restoration costs increased from 2190.27 to 5680.72 USD/ha with declining pre-existing natural regeneration or 3.99–10.34 USD per ton of sequestered CO<sub>2</sub>. Profits over 14 years ranged in NPV from 22,215.45 to 25,157.04 USD/ha, breaking even from just over 4 years to just under 7, respectively. In contrast, profits from maize cultivation (a major regional deforestation driver) averaged 96.25 USD/ha/year, or just 1347.53 USD/ha over 14 years. Consequently, forest restoration could become a financially attractive alternative land use, provided an open, transparent, carbon market is created. Therefore, this study supports creation of a forest-carbon trading system in Thailand, to incentivize forest restoration and fire prevention, increase farmers’ incomes, reduce smoke-related public health problems, protect watersheds, and conserve biodiversity.https://www.mdpi.com/1999-4907/13/2/144climate changecarbon creditsenvironmentforestryforest restoration |
| spellingShingle | Kanlayarat Jantawong Nuttira Kavinchan Prasit Wangpakapattanawong Stephen Elliott Financial Analysis of Potential Carbon Value over 14 Years of Forest Restoration by the Framework Species Method Forests climate change carbon credits environment forestry forest restoration |
| title | Financial Analysis of Potential Carbon Value over 14 Years of Forest Restoration by the Framework Species Method |
| title_full | Financial Analysis of Potential Carbon Value over 14 Years of Forest Restoration by the Framework Species Method |
| title_fullStr | Financial Analysis of Potential Carbon Value over 14 Years of Forest Restoration by the Framework Species Method |
| title_full_unstemmed | Financial Analysis of Potential Carbon Value over 14 Years of Forest Restoration by the Framework Species Method |
| title_short | Financial Analysis of Potential Carbon Value over 14 Years of Forest Restoration by the Framework Species Method |
| title_sort | financial analysis of potential carbon value over 14 years of forest restoration by the framework species method |
| topic | climate change carbon credits environment forestry forest restoration |
| url | https://www.mdpi.com/1999-4907/13/2/144 |
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