Effect of dendroremediation incentives on the profitability of short-rotation woody cropping of Eucalyptus grandis

Matthew Langholtz, Douglas R. Carter, Donald L. Rockwood, Janaki R.R. Alavalapati, Alex Green

Research output: Contribution to journalArticlepeer-review

19 Scopus citations

Abstract

Reclamation of municipal wastewater is one of the growing concerns of expanding urban centers. Tree crops are thought to provide not only an effective remediation solution but also a desirable rural landscape in the wildland-urban interface (WUI). Economic incentives can contribute to the economic viability of dendroremediation of reclaimed water in the WUI. A modified Faustmann optimization model has been applied to address the dendroremediation of municipal wastewater under Eucalyptus grandis coppice systems. Results suggest that each $1 kg-1 N increase in the dendroremediation incentive increases forestland value by $223-376 ha-1 ($90-152 acre-1), depending on the interest rate and site productivity. Profitability is highly sensitive to the cost of irrigation and the growth function, both of which might be controllable. Accounting for the dendroremediation service as a flow benefit rather than a stock benefit increases net returns by $61-64 ha-1 ($25-26 acre -1) and $138-148 ha-1 ($56-60 acre -1) assuming dendroremediation incentives of $1.50 and $3.50 kg-1 N, respectively.

Original languageEnglish
Pages (from-to)806-817
Number of pages12
JournalForest Policy and Economics
Volume7
Issue number5
DOIs
StatePublished - Aug 2005
Externally publishedYes

Funding

We thank Alan Bowlin and others for invaluable assistance and Woodward and Curran Engineering, the City of Orlando, and Orange County, Florida, for funding and support of this project.

FundersFunder number
Alan Bowlin
Florida
Orange County Community Foundation

    Keywords

    • Dendroremediation
    • Faustmann
    • Non-timber benefit
    • Phytoremediation
    • Short-rotation coppicing

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