Understanding How Carbon Market Participation Influences Forest Management Practices and Landowner Philosophy

Abstract

Forest ecosystems’ ability to efficiently sequester carbon dioxide (CO2) has created economic opportunities for landowners in both compliance (regulated) and voluntary carbon markets. While many studies have investigated forest landowner participation and philosophies regarding enrollment in forest carbon programs, little research has examined how forest management practices change after enrollment. The primary goal of this thesis is to assess how participation in forest carbon market programs influences forest management practices and management philosophy on enrolled lands. To achieve this goal, the objectives are to (1) synthesize existing literature to identify known impacts of forest carbon market participation on forest management practices, and (2) conduct semi-structured interviews with California Air Resources Board (CARB) Cap-and-Trade program project participants to investigate how enrollment has influenced approaches to management, income generation, and program satisfaction. Four areas with literature gaps were identified: IFM definitional and methodological ambiguity, compliance-market evaluation gaps and cross-jurisdictional alignment, barriers to entry and equity in landowner perception and integrity, credibility, and evolving demand-side norms. Post-interview analysis identified five theories explaining participation outcomes in the CARB Cap-and-Trade program: Management change exists but is highly context dependent, carbon markets create divergent philosophical buy-in, financial outcomes are scale dependent, governance friction and fear of invalidation, and media exposure as an emerging barrier.