Abstract:

Based on the survey data in Tongshan County, Jiayu County and Chongyang County of Xianning City in Hubei Province, China, the improved Faustmann-Hartman model was introduced to calculate the carbon sequestration income, wood income and expected value of forestland of carbon sequestration afforestation with Chinese fur under different stand ages. Then, the compensation standard for carbon sequestration afforestation was determined based on the carbon sequestration income and the loss of wood income of farmers, and the impact of economic factors such as wood price, carbon price and interest rate on compensation standard was discussed. It was shown that the expected value of forestland (combined with wood income and carbon sequestration income) reached the maximum value of 43 986.01 yuan·hm^-2 in 22 a under the given conditions. Compared with the maximum expected value of forestland, the wood income in 30 a was only 29 593.42 yuan·hm^-2. Thus, the ecological compensation, which should be the comprehensive of carbon sequestration income and farmer’s loss of wood income, was 14 392.59 yuan·hm^-2. When the compensation period was set as 30 a, the ecological compensation standard for carbon sequestration afforestation should be 832.33 yuan·hm^-2·a^-1. The compensation standard was most sensitive to changes of wood price, which was followed by the interest rate, and finally the carbon price. Based on the above findings, it was recommended to formulate reasonable compensation standard for carbon sequestration afforestation based on carbon sequestration income and loss of wood income, strengthen technical training for farmers on carbon sequestration afforestation, and establish a sound carbon trading market system to ensure forestry carbon sequestration supply and achieve multi-benefit coordinated development.

Key words: carbon sequestration afforestation, compensation standard, carbon trading, expected value of forestland, Faustmann-Hartman model