Microeconomics of nitrogen fertilization in boreal carbon forestry

TL;DR

This paper analyzes the economic and ecological impacts of nitrogen fertilization timing in boreal forests, showing that strategic fertilization can enhance carbon storage and profitability, with effects depending on stand maturity and timing.

Contribution

It introduces a microeconomic model to evaluate how fertilization timing affects timber and carbon stocks, providing new insights into optimal fertilization strategies for boreal forestry.

Findings

Early fertilization shortens rotations and reduces carbon storage.

Fertilization before stand maturity increases timber stock slightly.

Fertilization of mature stands can extend rotations and boost carbon sequestration.

Abstract

Nitrogen fertilization of boreal forests is investigated in terms of microeconomics, as a tool for carbon sequestration. The effects of nitrogen fertilization's timing on the return rate on capital and the expected value of the timber stock are investigated within a set of semi-fertile, spruce-dominated boreal stands, using an inventory-based growth model. Early fertilization tends to shorten rotations, reducing timber stock and carbon storage. The same applies to fertilization after the second thinning. Fertilization applied ten years before stand maturity is profitable and increases the timber stock, but the latter effect is small. Fertilization of mature stands, extending any rotation by ten years, effectively increases the carbon stock. Profitability varies but is increased by fertilization, instead of merely extending the rotation.