1. 1 Some new equations presented at NCSU 2011-06-28 Peter Lohmander

2. 2 ? Subject to dynamic equations and constraints. ? In general,Is strictly concave, with a maximum that gives the ”ideal climate”.

3. 3 ? ? If we replace the nonlinear objective function by a linear objective funcion, this could lead to extreme variations and make sustainability impossible.

4. 4 With “complete rotation forestry”:

5. 5 In case of continuous harvesting:

6. 6 In general:

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9. 9 Focus on replacing coal by biomass! The carbon stored in the forest is almost irrelevant compared to the substitution effect in the long run.

10. 10 Forestry with maximum harvest in relation to forestry with maximum carbon in the forest

11. 11 Derivation of a “carbon optimal” harvest rule using a simple functional form that can be generalized.

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15. 15 Numerical example:

16. 16 First: Let us maximize the average harvest level based on rotation forestry:

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19. 19 Second: Let us maximize the stock level of the forest:

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22. 22 Optimal combination of carbon storage and timber production: - Joint production and rational adaption to different conditions

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25. 25 Numerical example:

26. 26 Optimal forest management decision rule with two objectives:

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29. 29 How should forestry be adapted to roundwood net price changes and carbon storage subsidy changes? (OR: Why should you not manage all forest stands in exacctly the same way?)

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33. 33 The End