Determination of Optimum Rotation Age of Populus Deltoides Plantation in Regard to Economic Value of Carbon Sequestration

This research considers the optimal rotation age regarding to the carbon sequestration value in populous deltoides plantation in Choobar located in Guilan Province, north of Iran. First, the volume increment is determined by stem analysis method and carbon sequestration is determined by combustion in an electric oven. Then, Net present value (NPV) of carbon is calculated by using volume increment, carbon amount, interest rate, adjusted price of carbon and net revenue in order to determine the optimal rotation age. Faustmann model was used in order to determine the optimal rotation age. Data such as volume increment, carbon content, revenue, timber and carbon prices are used to estimate the NPV. The study also evaluates the effects of different cost of plantation and discount rates on the optimal rotation ages using NPV approach. Results showed that when economic value of carbon sequestration is considered, optimal rotation ages is 27 years. Sensitivity analysis is done for interest rate, cost of plantation, and carbon price. As cost of plantation increases, the optimal rotation age also increases and the net present value decreases. With the increase in carbon prices, the age of optimal rotation age decreases and the net present value increases.