Assessing the implications of a carbon market for boreal forest management

Abstract

Canada's forests —particularly the boreal—are a major storehouse of carbon. How they are managed could significantly affect Canada's greenhouse gas emissions while also presenting a new revenue source for forest managers. This study attempts to assess how a carbon price could affect forest management, particularly in Canada's boreal plains region. An integrated modelling approach is developed to incorporate both forest carbon and timber supply considerations within an optimal management framework. This modelling approach allows for consideration of alternative market and regula tory scenarios, along with a range of possible management intensity and harvest scheduling options over the landscape. The overall conclusion is that carbon incentives will increase the value of the boreal forest—potentially quite signifi cantly— and will generally encourage management changes consistent with sustainable forest management practices.