TitlePotential contribution of value of carbon in net income of community managed forests, Tarai, Nepal
Publication TypeJournal Article
Year of Publication2015
AuthorsMandal, RA, Dutta, IC, Jha, PKumar, Karmacharya, SBir
JournalScience Postprint
Keywordscarbon, collaborative, community, credit, forests

Objectives: To assess values of carbon and other than carbon, specifically timber, firewood, grasses in community and collaborative forests; to evaluate the projected contribution of carbon credit in the net value of forest using the discounted cash flow method for next ten years.

Methods: Stratified random sampling was applied setting the randomized block experimental design. A total of 176 samples were collected from three collaborative forest managements and three community forests of Tarai, Nepal, using GPS coordinate navigation in the field. Diameter at breast height (DBH) and height of plants (DBH >5 cm) were recorded and samples of plants (DBH< 5 cm) were collected. Soil samples were collected from 0–10, 10–30 and 30–60 cm depths. Biomass was estimated using allometric equation that was converted into carbon while soil carbon was analyzed in the lab. Samples were collected for three consecutive years and carbon stock credit was determined using the stock difference method. The carbon credit was evaluated using benefit and loss, net present value (NPV), profitability index (PI) and benefit-cost (B/C) ratio.

Results: The expected total value of carbon and non-carbon product between 2011 and 2013 was 62,260 USD and 125,100 USD, respectively, and it was a loss. The projected mean NPV, PI and B/C ratio were found to be 136 USD ha-1 year-1, 10 and 3, respectively, including the value of carbon for next ten years. The decision matrix showed the income would vary in these forests and bundling is good enough.

Conclusions: The higher the carbon sequestration is, the higher the NPV, PI and B/C ratio would be.



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