We integrate a carbon net sink and stand-level wood production to analyze their simultaneous optimization as an economic problem. Carbon is included in living trees, wood products, and forest soil. Forestry is specified by a size-structured model for optimizing thinning timing and intensity, rotation period, and the optimal choice of rotation versus continuous cover forestry. The optimal inclusion of a carbon net sink increases the carbon pool mainly in living trees and forest soil, while the effect on the product carbon pool remains minor. With a 3% interest rate, increasing the CO2 price to euro40 per tCO2 increases the total steady-state carbon pool by 131% and the soil carbon accounts for ca. 60% of the increased carbon storage. Omitting soil carbon, as in previous studies, leads to underestimates of the carbon sink, significantly decreasing the optimal total CO2 net sink and achievable economic net gain from joint wood production and carbon management. The inclusion of soil carbon suggests that, in contrast to previous results, a higher CO2 price does not necessarily favor continuous cover forestry.Peer reviewe
