Cost effectiveness of greenhouse gas reduction and profitability of forest production on old drained fields in Norway
1994
Braekke, F.H. (Norsk Inst. for Skogforskning, Aas (Norway). Div. of Forest Ecology) | Lunnan, A. | Roerstad, P.K.
Three experimental trials established from 1956 to 1959 on virgin oligotrophic peatland were selected for case studies on net present value, internal rate of return (IRR) and cost effectiveness (CE). Critical analyses of biological parameters showed that site indexes determined by top heights gave serious under-estimates of actual timber production. The stands obviously represent a subuniverse with higher pole stage stand density and higher diameter/height ratios than defined by the growth tables. Available models on biomass production were also evaluated. IRR for naturally seeded pine stands was about 2.6% without fertilization and 4.6% with. Planted and fertilized pine and spruce stands had 3.6% and 4.4% IRR respectively, which are higher than earlier published for such investments on oligotrophic sites.Net absorption of the climate gasses CO2, CH4 and N2O, expressed in CO2-equivalents per unit of cost of timber production (CE), is high for the cases in question and above the upper range of previously published figures. The CE of unfertilized naturally seeded pine is 33, of fertilized naturally seeded pine 41, of planted-fertilized pine 24 and of planted-fertilized spruce 29. Our CE-figures are high compared with the cost-effectiveness of other sector strategies of greenhouse gas reduction.
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