Two Manifestations of Market Premium in the Capitalization of Carbon Forest Estates

Autor:	Petri P. Kärenlampi
Jazyk:	angličtina
Rok vydání:	2022
Předmět:	capital return rate expected value carbon storage carbon rent Technology
Zdroj:	Energies, Vol 15, Iss 9, p 3212 (2022)
Druh dokumentu:	article
ISSN:	15093212 1996-1073
DOI:	10.3390/en15093212
Popis:	In this study, the effect of capitalization premium in forest estate markets on forest management and climate change mitigation economics is investigated. It is shown that proportional goodwill in capitalization induces linear scaling of the financial return, without any contribution to sound management practices. However, there is a financial discontinuity, as harvesting deteriorates goodwill. Such deterioration might be partially avoided by entering the real estate market. Conversely, a capitalization premium set on bare land as a tangible asset would increase timber storage and carbon sequestration. Observations indicate that the proportional goodwill is closer to reality within the Nordic Region, resulting in continuity problems.
Databáze:	Directory of Open Access Journals
Externí odkaz:	https://doaj.org/article/795a100e94494a159c9def212762983f Zobrazit plný text záznamu View record in DOAJ Plný text ve formátu PDF Plný text ve formátu HTML
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