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Biomass Energy and Climate Neutrality: The Case of the Northern Forest

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  • Shana M. McDermott
  • Richard B. Howarth
  • David A. Lutz

Abstract

We test the assumption that harvesting timber for energy production is assumed to have a carbon-neutral effect on climate. Our dynamic multiple-harvest Faustmann optimal rotation model of the Northern Forest and energy production in New Hampshire indicates that it is inappropriate to assume climate neutrality. We show that accounting for carbon means that timber bioenergy production causes negative externalities that lead to longer rotations. On average, carbon loss is 10.05 metric tons of stored carbon per hectare. To avoid this carbon release, logging rotations should be increased by up to 36%, or 12 years.

Suggested Citation

  • Shana M. McDermott & Richard B. Howarth & David A. Lutz, 2015. "Biomass Energy and Climate Neutrality: The Case of the Northern Forest," Land Economics, University of Wisconsin Press, vol. 91(2), pages 197-210.
    • Handle: RePEc:uwp:landec:v:91:y:2015:i:2:p:197-210
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    Citations

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    Cited by:

    1. Jones, Benjamin A. & McDermott, Shana M., 2018. "The economics of urban afforestation: Insights from an integrated bioeconomic-health model," Journal of Environmental Economics and Management, Elsevier, vol. 89(C), pages 116-135.
    2. Benjamin A. Jones & John Fleck, 2018. "Urban Trees and Water Use in Arid Climates: Insights from an Integrated Bioeconomic-Health Model," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 4(04), pages 1-38, October.
    3. Ulises Flores Hernández & Dirk Jaeger & Jorge Islas Samperio, 2018. "Evaluating Economic Alternatives for Wood Energy Supply Based on Stochastic Simulation," Sustainability, MDPI, vol. 10(4), pages 1-19, April.
    4. Daigneault, Adam & Johnston, Craig & Korosuo, Anu & Baker, Justin S. & Forsell, Nicklas & Prestemon, Jeffrey P. & Abt, Robert C., 2019. "Developing Detailed Shared Socioeconomic Pathway (SSP) Narratives for the Global Forest Sector," Journal of Forest Economics, now publishers, vol. 34(1-2), pages 7-45, August.
    5. Johnston, Craig M.T. & Cornelis van Kooten, G., 2015. "Back to the past: Burning wood to save the globe," Ecological Economics, Elsevier, vol. 120(C), pages 185-193.
    6. Handaya & Marimin & Dikky Indrawan & Herri Susanto, 2022. "A Comparative Life Cycle Assessment of Palm Kernel Shell in Ceramic Tile Production: Managerial Implications for Renewable Energy Usage," Sustainability, MDPI, vol. 14(16), pages 1-15, August.
    7. Ning, Zhuo & Sun, Changyou, 2019. "Carbon sequestration and biofuel production on forestland under three stochastic prices," Forest Policy and Economics, Elsevier, vol. 109(C).

    More about this item

    JEL classification:

    • Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources

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