Economic Viability and Carbon Sequestration of Mixed Native Forests in Southern Chile: An Integrated Faustmann Approach

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Abstract

This study evaluates the financial profitability and carbon sequestration in mixed native forests of the Roble–Raulí–Coigüe and evergreen types in the southern macrozone of Chile, integrating both ecosystem services into forest management decision-making. The Faustmann model and dynamic programming were applied to determine the optimal rotation periods and Land Expectation Value (LEV) under two scenarios: exclusive timber production and combined timber and carbon production. The results indicate that mixed forests consistently outperform monocultures in terms of profitability, especially in 25%-75% mix configurations and moderate densities (2000 trees/ha). The inclusion of the economic value of carbon increased the LEV and extended the optimal rotation periods, confirming the relevance of integrating ecosystem services into forest planning. These findings suggest that mixed native forests represent a competitive and sustainable alternative to monocultures, contributing to climate change mitigation and income diversification for forest owners.

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