Valuation of timber production and carbon sequestration on Järvselja nature protection area

Järvselja nature protection area was established in order to preserve and introduce virgin forests, to protect old natural forests, old deciduous forests and habitats of different species. At the same time the stands of nature protection area provide other benefits having both use and non-use values. The goal of the study is to assess the monetary value of the two components of forest ecosystem: timber production and carbon sequestration. The value of timber expresses to forest owners and policy-makers the opportunity cost of nature protection. The carbon sequestration represents the value of new service, highly appreciated in the context of climate policy. While a market for timber and carbon exists, the market-price method has been used for valuation. The data for calculations was obtained from the materials of forest inventory carried out in 2010 by the Department of Forest Management, Estonian University of Life Sciences. According to the calculations the theoretical long-term average value of timber is 325 euros per hectare. The monetary value of timber production is approximately three times higher compared to average productivity of Estonian private forests. The guidelines of Intergovernmental Panel on Climate Change for the inventories of greenhouse gases were used when transforming the growing stock and dead stem timber into biomass and finally into carbon and carbon dioxide. According to the price 4.62 € per ton of tradeable carbon equivalent in autumn 2013, the value of carbon sequestration on Järvselja nature protection area could be estimated 1473 € per hectare of forest land. Because of the high age of stands on nature protection area, the role of forests as a sequestrator of CO₂ is remarkable compared to commercial forests. The accumulation of carbon in old-growth natural forests is close to zero, but they still fulfil the role of being a carbon pool.