Forest carbon and a regional perspective on the effectiveness of financial instruments within the forest bioeconomy

Abstract

The forest bioeconomy links to a climate-neutral economy for which effective economic and financial promotion is essential to sustainable development. The main purpose of this study was to examine the effects of financial support on the development of the forest bioeconomy in the Czech Republic in the period 2000-2021. Research objectives were met by applying literature review, time series analysis, spatial data analysis, cartogram and cartodiagram method, correlation analysis, and regression analysis. Firstly, regional divergences in financial flows were observed. Owing to the bark beetle calamity, the peak of the financial support was detected in the Vysočina Region (CZK 4 658/EUR 190 per ha), and the Olomouc Region (CZK 2 780/EUR 113 per ha) in 2020. An upward trend - more than 6-fold growth of financial flows to forestry was found. Secondly, the forest carbon model was discovered and tested. Financial contribution for reforestation, establishment, and tending of forest stands increases net carbon sinks while financial contribution for green and environmentally friendly technologies increases net carbon sources. Regional carbon reservoirs offer the potential to contribute to climate targets and achieve sustainable progress.

Keywords

• circular economy
• czech republic
• financial support
• forestry
• regional analysis
• spatial analysis