Wood biomass use for energy in Europe under different assumptions of coal,gas and CO2 emission prices and market conditions

This study examines the effects of different coal, natural gas and carbon emission prices and market situations on the use of wood for electricity and heat production in the European Union. The analysis is carried out using the global forest sector model EFI-GTM expanded to cover electricity and heat production from wood, coal, natural gas, wind and solar energy. Analysis shows that with low coal and gas prices, use of wood for energy will be limited to low cost logging residues. With high coal, and especially natural gas prices, industrial wood also comes to be used for energy. At a carbon price of 100 €/tCO₂, some 32 Mm³ of industrial wood, in addition to 224 Mm³ of logging residues, are projected to be used for electricity and heat in the EU region (including Norway and Switzerland) in 2030. The relatively low quantity of industrial wood used by the energy sector despite the collapse of the use of coal is explained by the fact that under high CO₂ prices, other energy forms like natural gas, solar and wind energy become more and more competitive. However, the amount of industrial wood used for energy may substantially increase with subsidies for using wood for electricity and heat, even with relatively low carbon prices. With a high coal and gas price and a carbon price of 100 €/t, a subsidy of 30 €/MWh to the wood based and coal with wood co-firing electricity production will have a significant impact on the European wood based sector. Depending on the development of the market demand for forest industry products, such a subsidy may cause a 10–12.5% reduction in forest products production, a 6–9% increase in harvest level, about 30–60% increase in the pulpwood prices, and a 6–9 fold increase of wood imports in the EU, compared to the respective case without a subsidy in 2030.     

The potential and cost of increasing forest carbon sequestration in Sweden

This paper examines the potential and the cost of promoting forest carbon sequestration through a tax/subsidy to land owners for reducing/increasing carbon storage in their forests. We use a partial equilibrium model based on intertemporal optimization to estimate the impacts of carbon price (the tax/subsidy rate) on timber harvest volume and price in different time periods and on the change of forest carbon stock over time. The results show that a higher carbon price would lead to higher forest carbon stocks. The tax/subsidy induced annual net carbon sequestration is declining over time. The net carbon sequestration during 2015–2050 would increase by 30.2 to 218.3 million tonnes of CO₂, when carbon price increases from 170 SEK to 1428 SEK per tonne of CO₂. The associated cost, in terms of reduced total benefits of timber and other non-timber goods, ranges from 80 SEK to 105.8 SEK per tonne of CO₂. The change in carbon sequestration (as compared with the baseline case) beyond 2050 is small when carbon price is 680 SEK per tonne of CO₂ or lower. With a carbon price of 1428 SEK per tonne of CO₂, carbon sequestration will increase by 70 million tonnes of CO₂ from the baseline level during 2050-2070, and by 64 million tonnes during 2070–2170.     

A DEA approach to assess the efficiency of radiata pine logs to produce New Zealand structural grades

An efficiency analysis revealed the relative magnitude of wood traits that distinguishes efficient radiata pine logs to produce New Zealand structural grades. Technical and cost efficiencies were obtained by using data envelopment analysis (DEA). Wood trait prices used to perform the cost efficiency corresponded to economic weights derived from a partial regression. These values were 1.1, 29.7, 0.3 and ?0.4 NZ $/m³ for small end diameter (cm), stiffness (GPa), basic density (kg/m³) and largest branch (mm) respectively. The most efficient logs were those with the highest difference between recovery value and price. There were positive and significant correlations between technical efficiency and wood stiffness (0.46, p < 0.05) and between cost efficiency and log recovery value (0.85, p < 0.05). The most efficient logs had a ratio of 1:4 between stiffness and small end diameter whereas logs that did not generate structural lumber presented ratios close to 1:8. This information will inform the development of breeding objectives, and help segregating and pricing logs by using traits patterns that result in efficient logs for the production of structural wood.     

Economic impacts of adjacency and green-up constraints on timber production at a landscape scale

Although many different forest certification standards exist, harvest adjacency and green-up regulations are common to most certifying bodies. This study develops a means for evaluating trade-offs associated with implementation of nth-order adjacency and green-up constraints on a 1.7 million ha landscape in Oregon in the US. Depending on the type of adjacency structure and delay between harvests, the opportunity cost of the restrictions, estimated by the change in discounted sum of producer and consumer surplus in the regional log market, ranged from 0.25% to 66% (or US $60 million to $15.3 billion) of the unconstrained value. Increasing green-up delays beyond 30–40 years had little effect on estimated opportunity cost of the modeled restrictions.     

An interval fuzzy chance-constrained programming model for sustainable urban land-use planning and land use policy analysis

In this study, an interval fuzzy chance-constrained land-use allocation (IFCC-LUA) model is developed for sustainable urban land-use planning management and land use policy analysis under uncertainty. This method is based on an integration of interval parameter programming (IPP), fuzzy flexible linear programming (FFLP) and chance-constrained programming (CCP) techniques. Complexities in land-use planning management system can be systematically reflected, thus applicability of the modeling process can be highly enhanced. The developed method is applied to planning land-use allocation practice in Nanjing city, China. The objective of the IFCC-LUA is maximizing net benefit from LUA system and the main constraints include investment constraints, land suitability constraints, water/power consumption constraints and wastewater/solid waste capacity constraints. Modeling results indicate that desired system benefit will be between [1.34, 1.74] × 10¹² yuan under the minimum violating probabilities; the optimized areas of commercial land, industrial land, agricultural land, transportation land, residential land, water land, green land, landfill land and unused land will be [290, 393] hm², [176, 238] hm², [3245, 4390] hm², [126, 170] hm², [49, 66] hm², [1241, 1679] hm², [102, 138] hm², [7, 10] hm² and [178, 241] hm². They can be used for generating decision alternatives and thus help decision makers identify desired land use policies under various system-reliability constraints of economic development requirement and environmental capacity of pollutant. Tradeoffs between system benefits and constraint violation risks can also be tackled.     

Landowner net benefit from Stone pine (Pinus pinea L.) afforestation of dry-land cereal fields in Valladolid,Spain

This analysis measures the net benefit that a landowner could obtain from changing current dry-land cereal fields into Stone pine plantations in Portillo and Viana (Valladolid, Spain). We apply cost–benefit analysis techniques to estimate the present value of Stone pine afforestation net benefit by considering an infinite series of forestry rotations. We simulate three Stone pine silviculture models at each of the two sites. In addition, we estimate landowner extended net benefits from Stone pine afforestation when we consider a hypothetical payment for the carbon sequestration service. Results show that, when government subsidies are included, Stone pine afforestation only offers positive landowner net benefit in Portillo when both medium and high-stocking silviculture models are applied. Taking into account carbon prices up to €45 tC^?1 (€12.3 tCO₂^?1), Stone pine afforestation gives landowner positive extended net benefits for the three silviculture models simulated at the Portillo and Viana sites.     

Forest carbon benefits,costs and leakage effects of carbon reserve scenarios in the United States

This study evaluated the potential effectiveness of future carbon reserve scenarios, where U.S. forest landowners would hypothetically be paid to sequester carbon on their timberland and forego timber harvests for 100 years. Scenarios featured direct payments to landowners of $0 (baseline), $5, $10, or $15 per metric ton of additional forest carbon sequestered on the set aside lands, with maximum annual expenditures of $3 billion. Results indicated that from 1513 to 6837 Tg (Teragrams) of additional carbon (as carbon dioxide equivalent, CO₂e) would be sequestered on U.S. timberlands relative to the baseline case over the next 50 years (30–137 Tg CO₂e annually). These projected amounts of sequestered carbon on timberlands take into account projected increases in timber removal and forest carbon losses on other timberlands (carbon leakage effects). Net effectiveness of carbon reserve scenarios in terms of overall net gain in timberland carbon stocks from 2010 to 2060 ranged from 0.29 tCO₂e net carbon increase for a payment of $5/tCO₂e to the landowner (71% leakage), to 0.15 tCO₂e net carbon increase for a payment of $15/tCO₂e to the landowner (85% leakage). A policy or program to buy carbon credits from landowners would need to discount additions to the carbon reserve by the estimated amount of leakage. In the scenarios evaluated, the timber set-asides reduced timberland area available for harvest up to 35% and available timber inventory up to 55%, relative to the baseline scenario over the next 50 years, resulting in projected changes in timber prices, harvest levels, and forest product revenues for the forest products sector.     

Carbon storage in a bamboo (Bambusa vulgaris) plantation in the degraded tropical forests: Implications for policy development

Tropical forests potentially contribute to global climate change mitigation through carbon sequestration, hence a global carbon pool. In order to mitigate the global climate change impact, the Kyoto protocol developed the clean development mechanism (CDM) which supports carbon credits for plantation activities in developing countries. Unfortunately, none of the CDM forestry projects included bamboo as a carbon reservoir. Although bamboo is an integrating part of tropical forest ecosystems, it was overlooked in the initial negotiating process. The present study, therefore, investigated the carbon storage potential of a common bamboo species, Bambusa vulgaris at Lawachara forest reserve of Bangladesh. Results showed that five-year-old B. vulgaris stand stored in total 77.67 t C ha⁻¹ of which 50.44 t C ha⁻¹ were stored in the above ground biomass (culms, branches and leaves), 2.52 t C ha⁻¹ in the below ground biomass and 24.71 t C ha⁻¹ in the soils. This amount of carbon storage is much more promising than the carbon storage of many other tree species considered in the CDM projects. These findings demonstrate the potential of B. vulgaris to be considered in CDM projects as a plantation species and thereby mitigate climate change impact more efficiently.     

Forest fragmentation reduced carbon storage in a moist tropical forest in Bangladesh: Implications for policy development

Forest fragmentation is continued to be widespread in the tropics resulting in reduced ecosystem services including carbon storage. However, the effect of forest fragmentation is not considered in the current carbon policy. We investigated the effect of forest fragmentation on tree biomass carbon and soil organic carbon (SOC) storage in a moist tropical forest in Bangladesh. Above and below-ground tree biomass carbon were calculated by using widely accepted allometric equations and SOC was measured by sampling soils up to 10 cm depth and analyzing them in a soil laboratory. Results showed that carbon storage in tree biomass was significantly lower in fragmented forests (16.3 ± 1.37 t C ha⁻¹) than in contiguous forests (31.21 ± 2.75 t C ha⁻¹) (p < 0.001). Likewise, a significantly lower SOC was contained in the soils of fragmented forests (17.26 ± 0.83 t C ha⁻¹) than in contiguous forests (21.62 ± 0.78 t C ha⁻¹) (p < 0.001). Thus a total of 36% less carbon retained in tree biomass and soils in fragmented forests than in contiguous forests. Backward multiple linear regression analysis revealed tree density, tree height, tree DBH, height-diameter ratio (H/D) and tree species richness as influential factors of carbon variation in fragmented forests. All these structural parameters except tree species richness were significantly lower in fragmented forests, were positively associated with carbon storage and explained together 69% of the carbon storage variation. These findings suggest that the altered stand structure and tree allometry likely caused reduced carbon storage in fragmented forests and highlight the importance of landscape scale management intervention in the tropics. Here, we provided with the evidence of strong negative impact of forest fragmentation on carbon storage and argue that this effect should be in consideration which is currently overlooked in existing carbon accounting systems for tropical forests.     

Public policies can reduce tropical deforestation: Lessons and challenges from Brazil

Reducing carbon emissions from deforestation and forest degradation now constitutes an important strategy for mitigating climate change, particularly in developing countries with large forests. Given growing concerns about global climate change, it is all the more important to identify cases in which economic growth has not sparked excessive forest clearance. We address the recent reduction of deforestation rates in the Brazilian Amazon by conducting a statistical analysis to ascertain if different levels of environmental enforcement between two groups of municipalities had any impact on this reduction. Our analysis shows that these targeted, heightened enforcement efforts avoided as much as 10,653 km² of deforestation, which translates into 1.44 × 10⁻¹ Pg C in avoided emissions for the 3 y period. Moreover, most of the carbon loss and land conversion would have occurred at the expense of closed moist forests. Although such results are encouraging, we caution that significant challenges remain for Brazil's continued success in this regard, given recent changes in the forestry code, ongoing massive investments in hydro power generation, reductions of established protected areas, and growing demand for agricultural products.     

Managing tropical wetlands for advancing global rice production: Implications for land-use management

Being fertile lands, wetlands have been managed for traditional agriculture over millennia. However, the integrity and ecosystem services of wetlands are being jeopardized by intensive land-use comprising of drainage and excessive disturbance. An adhoc and intensive use of wetlands, without preserving ecological integrity is causing ecosystem disservices and threatening conversion of a large soil organic carbon (SOC) sink into a net source. Wetlands in the tropical parts of the world are distributed unevenly and represent ∼3% of the total world land area. Due to stagnancy and even reduction in rice (Oryza sativa) yield of many agricultural regions, there is a need for additional and alternative land-uses which can raise the global rice production to ∼1 billion Mg (megagram = 10⁶g = metric ton) by 2050 from ∼497 million Mg now. Wetlands can be a viable option to advance global food security because of high soil fertility and vast geographical distribution. A ‘3-tier rice production system’ is proposed herein based on specific hydrological niche to advance global food security without degrading the ecosystem services of wetlands. In addition to increasing agronomic yield, the proposed modus operandi can also improve the livelihood security of farmers through an additional income streams by: (i) trading of SOC credits generated through adoption of conservation agriculture in littoral zones, and (ii) promoting fish and duckery culture in conjunction with deepwater rice farming. Furthermore, the proposed strategies will also set in motion the process of restoration of wetlands while enhancing C sink capacity of the ecosystems.     

Assessing the efficiency of switchgrass different cultural practices for pellet production

Switchgrass is a perennial crop producing high amounts of biomass for good quality pellet production. The objective of this study is to examine the efficiency of different cultural practices of switchgrass for pellet production under field conditions for four different N-fertilization (0, 80, 160 and 240 kg ha⁻¹) and two different irrigation levels (0 and 250 mm), in two soils in central Greece with rather different moisture status over the period 2009–2012. Moreover, comparison between three harvest methods (two different types of bales and silage) was made. The results derived from this study revealed that the bale at 22 kg is the harvesting practice with the highest costs while there was reduction of efficiency scores when nitrogen levels increased. At both environments the efficiency scores followed the same trend, confirming that low levels of nitrogen fertilization enhance the economic competitiveness of switchgrass production. Palamas site is the area where switchgrass for pellet production had positive income ranging from 400 to 1600 € ha⁻¹, while Velestino site had always negative. Therefore, places like Velestino with non-aquic soil should be avoided for switchgrass. These data suggest that growing switchgrass for solid biofuel production as energy crop is a worthwhile decision only in areas with a moderately shallow groundwater table (aquic soil) or maybe in high precipitation regions.     

Diversity of Mexican diets and agricultural systems and their impact on the land requirements for food

Mexico is a megadiverse country with large agroclimatic diversity and socioeconomic inequality. These two factors result in strong diversity in diets and agricultural systems within the country. In this paper, we assess the impact of Mexican diets and production systems on the per capita land requirements for food. We estimate it for the extremes: from the very basic diet of the poorest share of the population to the affluent diet of the richest share of the population; and for extensive and intensive systems, with irrigation as the indicator of the intensity of the system. We show that the basic diet produced in rainfed systems requires 1620 m²/cap/yr and produced in irrigate systems requires 700 m²/cap/yr. The affluent diet produced in rainfed systems requires 2540 m²/cap/yr and produced in irrigated systems requires 1230 m²/cap/yr. Hence, differences in diets result in a requirement for 80% or 60% more land for an affluent diet; and differences in production systems result in more than twice the amount of land for extensive than for intensive systems. In 2050, it would be possible to feed the entire population with affluent diets only if all the present area of crop land had the productivity of intensive systems. In contrast, it would be possible to feed all people with a basic diet even if all present crop land area had only the productivity of extensive systems.     

A dividing issue: Attitudes to the shooting of rear and release birds among landowners,hunters and the general public in Denmark

Why are organised shoots involving birds that are farm-reared and subsequently released a dividing issue in several countries? As a contribution to answering this question the paper reports a national survey of landowners (n = 1207), hunters (n = 1130) and the general public (n = 1001) in Denmark. While there was broad agreement across all three groups that recreational hunting of naturally occurring “surplus” wildlife is acceptable, the release of farm-reared game birds for shooting was a dividing issue, both within the groups and between them. The majority of participants (51%) in the survey representing the general public were against the practice; a majority of hunters (61%) were in favour of it; and landowner approval rates lay between these two poles. Respondents with a “mutualist” or “distanced” wildlife value orientation according to the definitions by Teel et al. (2005) consistently displayed a more negative attitude to rear and release shooting than those with a “utilitarian” orientation. The differences in attitude could not be explained in terms solely of underlying concerns about nature conservation and biodiversity protection. Concerns about the behaviour of the released birds, and about hunting “culture” and regulatory measures, also informed the participants’ attitudes. The regulatory framework governing shooting based on the release of farm-reared birds could reflect a wider range of concerns than those hitherto acknowledged.     

Trends in land ownership fragmentation during the last 230 years in Czechia,and a projection of future developments

A high level of fragmentation of farmland ownership is an important underlying cause of land degradation and, at the same time, an obstacle to sustainable land management. This study makes the first-ever analysis of long-term trends in the rate of fragmentation. Our study covers the period from the earliest stages of the current form of ownership patterns at the end of the 18th century until the present day. On the basis of significant predictors that have been identified (initial fragmentation, population growth, historical development of inheritance laws and of the land market, natural soil fertility and landscape type), we go on to project probable developments for the period from 2016 to 2045. A total of 102,984 land parcels in 56 cadastral units in the territory of Czechia have been analysed on the basis of data from four years (1785, 1840, 1950, 2015). Our study considers the development of two basic indicators of fragmentation – Mean Parcel Size and Number of Owners per 100 ha. The Mean Parcel Size has decreased over a period of 230 years from 1.08 ha to 0.64 ha, at a mean rate of −0.26% year⁻¹. During the same period, the Number of Owners per 100 ha has risen from 17.50 to 79.66, at a mean rate of 0.61% year⁻¹. A detailed analysis of the development trends confirms significant spatial variability and also time variability of the rates of the two indicators. The analysis also shows their mutual complementarity: growth in the rate of one of the indicators is usually accompanied by a drop in the other. The general trend that we project for the territory of Czechia in the upcoming 30 years is that there will be further diminution of the physical size of land parcels (continuing fragmentation of land parcels) accompanied by a reduction in the Number of Owners (defragmentation of land ownership).     

Cost of best management practices to combat agricultural runoff and comparison with the local populations’ willingness to pay: Case of the Austreberthe watershed (Normandy,France)

Land Use and Cover Changes (LUCCs) significantly increase the frequency of mudflows in the silty areas of north-western Europe and particularly in the NUTS 3 Seine-Maritime region (France). Predicting the effects of a range of possible LUCCs helps local authorities choose policies that can help to mitigate the risks to which local populations are exposed. In this article we build scenarios for changes in farming systems, with a 2015 horizon and with 2007 as the initial situation. These scenarios are assessed through combined biophysical and economic approaches. Two scenarios for the disappearance of dairy farming are chosen. One scenario has no public-action program (StopMilk), while the other one has a program based on the funding of best management practices (StopMilk-E). These scenarios are assessed at the small watershed scale (7 km²) in terms of both changes in farming systems and effects on runoff (use of the STREAM model). Finally, the economic evaluation of additional costs of StopMilk-E is extrapolated at the level of the Austreberthe watershed syndicate (214 km²), using the French Land Parcel Identification System (LPIS) with a spatially referenced database of cropping plans. StopMilk leads to a significant increase in runoff whereas the local public-action program proposed under StopMilk-E reduces runoff to below the 2007 level. The Austreberthe watershed residents’ willingness to pay for a 15-year program is around €395,000/year, which is not sufficient to balance the cost of the modified farming practices (€640,000/year over the first 3 years). Funding of the practices would require either subsidies from a higher level (Europe), borrowing by the community, and/or a more selective approach in the type and the location of farming practices to be funded. The method used for calculating costs at the watershed syndicate level shows the huge potential of new databases like LPIS (available in France since 2006) for the assessment of environmental issues.     

Indonesia's moratorium on new forest licenses: An update

In 2011 Indonesia decreed a moratorium on forest licenses over 69 million hectares (Mha) in order to suspend haphazard forest exploitation. However, only ∼12–22 Mha were actually afforded new protection from licensing. Herein I observe a further 5.5 Mha of moratorium area overlapping forest licenses and therefore subject to excisement from the moratorium. These 5.5 Mha, like the 4.5 Mha excised from the moratorium to date, are not readily explicable outside of small government committees. This highlights the quasi-transparency of the mapping process: the moratorium map is widely disseminated, yet its base data and decisions made on their basis are guarded. Implementing ministries seek to comply with reforms while simultaneously protecting their administrations from upset – an ultimately compromised position with tangible implications. This has undermined acceptance by the inherently sceptical Indonesian conservation community; yet its highly critical ‘watch dog’ role has ironically contributed by heightening government wariness. The way out of this dynamic is for the ministries to render all data public and, critically, be prepared to weather the inevitable wave of data-fuelled attack for the public good.     

The role of wildlife-associated recreation in private land use and conservation: Providing the missing baseline

Successfully integrating human activities with ecosystem conservation forms the foundation of sustainability and is key to maintaining biological diversity. This is especially important in privately-owned lands in the U.S., which harbor high levels of biodiversity yet are often vulnerable to habitat degradation and loss. This study analyzes recreation as a sustainable use on private property, focusing on wildlife-associated recreation, defined here as fishing, hunting and wildlife watching. Eighteen national surveys implemented by three U.S. government agencies spanning 1999–2013 were analyzed to provide baseline information and an assessment of the conservation impact of recreation. Results show that approximately 440.1 million acres of private land, ∼22% of the contiguous land area of the U.S., are either leased or owned for wildlife-associated recreation. Land utilized for hunting accounts for 81% of that total. Approximately 33% of private forestland, 18% of private grazing land and 4% of private cropland is used to earn revenue from recreational activities. Annual spending for wildlife-associated recreation on private land is estimated at $814 million in day-use fees, $1.48 billion for long-term leases, and $14.8 billion to own land primarily for recreation (2011 dollars). Hunters own or lease properties of larger size classes than anglers or wildlife-watchers, indicating that hunting may provide a greater economic incentive for maintaining large unfragmented properties that provide a variety of conservation benefits. On grazing and cropland, landowners who earn income from recreation are significantly more likely to participate in government conservation programs (p < 0.001) and to pay for private conservation practices (p = 0.08). This provides support that recreation incentivizes conservation at higher rates than agricultural activities alone. Three policy measures that could further enhance conservation benefits of recreation are discussed.     

The financial benefits of forest certification: Case studies of acacia growers and a furniture company in Central Vietnam

The demand for forest products is growing and plantation forests are supplying an increasing proportion of wood to industry. There are also increasing market requirements to demonstrate the sustainability of timber supply. Vietnam has some 3.9 M ha of plantation forests, 44% of which is on short-rotations managed by smallholders. More than 80 percent of the harvested volume from the plantation forests is used for woodchip production to serve domestic and international markets. The Vietnam Government has goals to increase the domestic supply of suitable wood for furniture production to international markets by increasing the supply of larger logs grown in plantations and the supply of certified wood to industry. However, it is not clear that these objectives will necessarily benefit growers and processors. This study compared financial returns from certified and non-certified forest products for: (1) growers with 10-year rotation acacia plantations; and (2) a furniture processing business (battens for chair and table) in Quang Tri Province, Central Vietnam. The data were collected from smallholder tree growers and a sawmilling company, triangulated with and supplemented by formal and informal interviews with other stakeholders. Currently, much of the cost of certification is met by external aid donors. Results showed that net returns from both certified and non-certified timber products are positive for both actors and are higher from certified timber production than non-certified timber production. When the full costs of certification are included, the benefits to growers of certification are much reduced and potentially negative unless the fixed costs can be spread over a large group of growers. A minimum of group with 3000 ha may be required to make certification cost effective. In recent years, the price difference between the certified and non-certified logs is narrowing and this may discourage farmers from attaining certification. For the sawmiller, the benefit of certified timber production is greater. It would be in their interests to increase prices paid to growers for certified logs. Government policy measures to support certification should include consideration of who bears the cost, support for aggregation of smallholder growers and improved communication in timber supply chains.     

Carbon mitigation potential of the French forest sector under threat of combined physical and market impacts due to climate change

Objectives(1) To quantify the contribution of the French forest-wood product chain in terms of carbon sequestration and substitution when accounting for both the physical impacts (shifts in tree growth and mortality rates) and the market impacts (increased demand of harvested wood products (HWP)) of climate change (cc) and the subsequent forest managers adaptations; (2) To assess the uncertainty of the impacts on the above carbon balance and on forest allocation; and (3) To assess the role of managers’ expectations toward these future, uncertain but highly anticipated, impacts.MethodologyWe used a bio-economic model of the French Forest Sector (FFSM++) that is able to consider and integrate: (a) the effects of climate change over forest dynamics; (b) forest investment decisions (among groups of species) according to expected profitability; and (c) market effects in terms of regionalised supply, consumption and trade of HWP, depending on the forest resource stocks and international prices. By including both forest dynamics and forest products, we can evaluate the carbon balance taking the following elements into consideration: (a) carbon sequestered in live and dead biomass in the forest; (b) carbon sequestered in HWP; (c) carbon substituted when wood is used in place of fossil fuels or more energy-intensive materials; and (d) carbon released by forest operations.ResultsWhen the model is run at constant conditions for the next century, the average carbon potential of French forests is 66.2–125.3 Mt CO₂ y⁻¹, depending on whether we consider only inventoried wood resources, HWP pools and direct energy substitution, or if we also account for the carbon stored in tree branches and roots and if we consider the more indirect, but also largely more subjective, material substitution. These values correspond to 18.3% and 34.7%, respectively, of the French 2010 emissions (361 Mt CO₂). However, when we consider both the probable increment of coniferous mortality and changes in forest growth, plus the rise in HWP demand worldwide, the average sequestration rate of the French forest decreases by 6.6–5.8% to 61.8–118.0 Mt CO₂ y⁻¹. Running partial scenarios, we can assess the relative interplay of these two factors, where the price factor increases the HWP stock while decreasing the forest stocks (where the latter effect prevails), while the physical impact of climate change reduces both, but to a lesser extent. Considering short-sighted forest managers, whose behaviour is based uniquely on the observed conditions at the time decisions are made, we obtain a limited effect of the overall carbon balance but a relatively large impact on the area allocation of broadleaved vs. coniferous species.