Trees, Forests and People (Dec 2024)
West Virginia forest landowners’ preferences for forest carbon offset programs
Abstract
Several carbon offset programs allow West Virginia (WV) forest landowners to manage their forests to mitigate climate change and promote forest sustainability while providing an opportunity to earn extra income through carbon offset credits. While this market has grown rapidly, accessibility issues for small family forest owners remain. This study examines WV forest landowners’ insights and understanding of forest carbon offset programs and program preferences through an online survey of WV's Managed Timberland Program participants. Results showed that 97 % of respondents find it important to keep their land forested and 41 % think that carbon offset programs will help keep their land forested. However, the majority have no knowledge of carbon offset programs (55 %) nor an understanding the credit generation process (60 %). An econometric model was estimated to examine the influence of program attributes to landowners’ decision to enroll in a carbon offset program. Survey results suggest that landowners will more likely participate in carbon offset programs that require shorter time commitment (1–5 years), pay higher revenues, allow harvest or limited harvest restrictions, and do not charge an early withdrawal penalty. For example, a $1 increase in revenue payment raises the probability of enrolling in a carbon offset program by 1.2 %. However, extending the time commitment from 1 to 5 years to 40 years or 100 years decreases the probability of enrollment by 10.3 % and 17.4 %, respectively. Additionally, prohibiting harvest and imposing an early withdrawal penalty decrease the probability of enrollment by 18.1 % and 9.5 %, respectively. Landowners expressed greater willingness to enroll if they believe it is important to keep their land forested, they have familiarity and knowledge of the carbon offset market, and they believe carbon offset programs will help keep their land forested. Age, educational level, and length of ownership were also found to be significant factors in influencing landowner participation in forest carbon offset programs. Lastly, a welfare estimate, or landowners’ willingness-to-accept (WTA), was estimated for each of the program attributes. Surveyed landowners’ WTA payment for a carbon program was $22/ha/year or $37/ha/year greater if program duration increased from 1 to 5 years to 40 years or 100 years, respectively. In addition, landowners’ WTA payment was $39/ha/year greater if a “no harvest” requirement is implemented and $19/ha/year more if a penalty for early withdrawal is imposed. This study shows how factors like duration, payment, harvest restrictions, and withdrawal penalties influence landowner enrollment in carbon offset programs. By examining the preferences and decision-making processes of forest owners, this research fills a critical gap in the literature by providing insights into the drivers of program participation. The findings contribute to a better understanding of how to design more effective carbon programs that align with landowner motivations, ultimately supporting climate mitigation goals and sustainable forest management practices.
