Natural Resource Management

Emerging Ecosystem Service Markets
Carbon Sequestration in the Hofmann Forest, Onslow County, NC

A four-member group of graduate students in a natural resource management course at North Carolina State University modeled two scenarios to determine the feasibility of managing for carbon on a section of the Hofmann Forest.  The study compares the financial and ecological tradeoffs between “business as usual” (BAU) and two scenarios: 1) the current voluntary carbon market, and 2) a compliance carbon market.  The analysis concludes that under the first scenario, there are minimal financial gains associated with managing for carbon.  Under the second scenario where cap-and-trade legislation regulates greenhouse gases, a lucrative situation exists for the Hofmann Forest.

Modeling Procedures

In order to determine the financial effects of managing land for carbon credits, a comparison to the baseline business-as-usual model must be conducted.  Currently there are three practices that turn a profit, Agricultural Leases, Loblolly Plantations, and Longleaf Plantations.  The SEVs of each practice are determined.  The same methods used to create these Business As Usual models were used for calculations of carbon credit options.  The differences between the carbon models and the BAU models are due to the sale of carbon credits only.

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