Financial attractiveness of wood production in smallholder plantations of central Vietnam in the context of developing carbon markets

Kanninen M., . and Ha H. T., . and Malkamäki A., . and Simola N., . and Arvola A. M., . Financial attractiveness of wood production in smallholder plantations of central Vietnam in the context of developing carbon markets. pp. 137-148. ISSN 0128-1283

In Vietnam fast-growing Acacia hybrid dominates commercial smallholdings and is largely managed in short rotations for pulpwood. However increasing demand for logwood implies growing Acacia hybrid in longer rotations. One way of encouraging smallholders to prolong the rotation would be payments for aboveground carbon storage. Thus this study evaluated the financial attractiveness of shifting from pulpwood to logwood production with and without hypothetical carbon payments of 5 10 and 20 tCO‚‚e ha-. The data were drawn from smallholder interviews a plantation inventory and a market study. The growth models for a 5-year pulpwood regime and various logwood regimes used for financial modelling were developed in CO2FIX simulation software. With a financially optimal rotation length of 9“10 years the study finds that growing Acacia hybrid for logwood is much more profitable than growing it for pulpwood. However due to thinning in logwood regime a financially optimal logwood regime stores only 15“16 more carbon than a 5-year pulpwood regime. Consequently carbon payments at any of the three price levels would not shift the financially optimal rotation length. The study concluded that carbon payments alone are unlikely to be an effective means to encourage smallholders in central Vietnam to prolong the rotation.

Full text available from: Official URL: https://info.frim.gov.my/infocenter_applications/j...

Abstract

In Vietnam fast-growing Acacia hybrid dominates commercial smallholdings and is largely managed in short rotations for pulpwood. However increasing demand for logwood implies growing Acacia hybrid in longer rotations. One way of encouraging smallholders to prolong the rotation would be payments for aboveground carbon storage. Thus this study evaluated the financial attractiveness of shifting from pulpwood to logwood production with and without hypothetical carbon payments of 5 10 and 20 tCO‚‚e ha-. The data were drawn from smallholder interviews a plantation inventory and a market study. The growth models for a 5-year pulpwood regime and various logwood regimes used for financial modelling were developed in CO2FIX simulation software. With a financially optimal rotation length of 9“10 years the study finds that growing Acacia hybrid for logwood is much more profitable than growing it for pulpwood. However due to thinning in logwood regime a financially optimal logwood regime stores only 15“16 more carbon than a 5-year pulpwood regime. Consequently carbon payments at any of the three price levels would not shift the financially optimal rotation length. The study concluded that carbon payments alone are unlikely to be an effective means to encourage smallholders in central Vietnam to prolong the rotation.

[error in script]

Item Type:	Article
AGROVOC Term:	Logging
AGROVOC Term:	Sawlogs
AGROVOC Term:	Acacia
AGROVOC Term:	Pulpwood
AGROVOC Term:	Smallholders
AGROVOC Term:	Wood carbonization
AGROVOC Term:	Sampling
AGROVOC Term:	Financial analysis
AGROVOC Term:	Forest inventories
AGROVOC Term:	Financial situation
Depositing User:	Mr. AFANDI ABDUL MALEK
Last Modified:	24 Apr 2025 00:55
URI:	http://webagris.upm.edu.my/id/eprint/9492

Actions (login required)

View Item