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FORESTS, CARBON, AND BIOMASS ELECTRICITY GENERATION: TWO ESSAYS IN NATURAL RESOURCE ECONOMICS

Meeusen, Karl M.
http://rave.ohiolink.edu/etdc/view?acc_num=osu1316202710

Abstract Details

2011, Doctor of Philosophy, Ohio State University, Agricultural, Environmental and Developmental Economics.
Chapter One of this research examines the effects of using forest and forest waste products for both electricity generation and traditional timber products, looking specifically at the optimal rotation age of forests and the maximum net present value (NPV) of forest land. This research uses both a deterministic setting characterized by the traditional Faustmann model and various scenarios where prices, growth rates, and interest rates are uncertain to look at how foresters’ decisions may change when they also take into consideration the value of forests for carbon storage and offsets and the value of mill and forest residues as an alternative fuel source for electricity generation. A numerical example is developed showing the methods applied to Oak-Hickory forests in Ohio. In the deterministic model, when carbon prices are added, the forester maximizes the NPV of the forest using only mill waste for electricity generation until carbon price reach $160. At carbon prices greater than $160, the forester maximizes the NPV by harvesting the forest waste as well as using the mill waste for electricity generation. The environmental benefits of using mill waste and forest waste for electricity can offset from 191,108 to 222,205 tons of carbon per year in the state of Ohio. Using a Monte Carlo simulation to account for uncertainty in growth rate, timber price and carbon price this research shows the rotation age decreases, but not at statistically significant level until carbon prices exceed $200 per ton. However, additional flexibility in the rotation age allows the forester to take advantage of the spikes in prices caused by uncertainty, improving the NPV of the forest land. The research conducted in Chapter two examines a global forestry model with multiple uses for harvested timber. Specifically, utilizing dynamic linear programming, this research addresses the global effect on optimal forestry planning and carbon sequestration when forest products are used for either traditional timber products or electricity generation. In this model, a biomass electricity sector is defined and comprised of electricity generated from forest residues, milling residues, and a choice variable to determine if otherwise merchantable timber is best used for energy production or timber. This research finds that using forest residues for electricity production leads to increased quantities of timber harvested, reduced timber prices, and a slight decrease in the total carbon stored in the forest. The Alternate Scenarios showed quantities harvested between 0.83 percent and 6.82 percent greater than the Baseline Scenario. Timber prices in the Baseline Scenario are as much as 3.85 percent greater than prices in the Alternate Scenarios. The results also show that adding biomass electricity from forest residues, while offsetting as much as 2.9 Pg of carbon over all periods tested, may not lead to positive or sustainable net carbon storage in the total forestry system.
Brent Sohngen, DF (Advisor)
Tim Haab, PhD (Committee Member)
Doug Southgate, PhD (Committee Member)
144 p.
Agricultural Economics; Economics; Environmental Economics
Forestry; Faustmann; Carbon Sequestration; Biomass; Uncertainty

Recommended Citations

Citations

  • Meeusen, K. M. (2011). FORESTS, CARBON, AND BIOMASS ELECTRICITY GENERATION: TWO ESSAYS IN NATURAL RESOURCE ECONOMICS [Doctoral dissertation, Ohio State University]. OhioLINK Electronic Theses and Dissertations Center. http://rave.ohiolink.edu/etdc/view?acc_num=osu1316202710

    APA Style (7th edition)

  • Meeusen, Karl. FORESTS, CARBON, AND BIOMASS ELECTRICITY GENERATION: TWO ESSAYS IN NATURAL RESOURCE ECONOMICS. 2011. Ohio State University, Doctoral dissertation. OhioLINK Electronic Theses and Dissertations Center, http://rave.ohiolink.edu/etdc/view?acc_num=osu1316202710.

    MLA Style (8th edition)

  • Meeusen, Karl. "FORESTS, CARBON, AND BIOMASS ELECTRICITY GENERATION: TWO ESSAYS IN NATURAL RESOURCE ECONOMICS." Doctoral dissertation, Ohio State University, 2011. http://rave.ohiolink.edu/etdc/view?acc_num=osu1316202710

    Chicago Manual of Style (17th edition)

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This open access ETD is published by The Ohio State University and OhioLINK.