We studied the economic performance of a high-elevation protection forest in the Alps, where productivity increases due to climate change and where the timber market for the dominating cembran pine (Pinus cembra) is favorable. We simulated the standing timber stock and the soil carbon pool for a 100-year period with climate-sensitive models and compared harvesting costs with expected revenues. Ourscenarios included different climates, intensities of timber extractions, parameters of the timber market, and the availability of government subsidies. Overall, the productivity of forests increases by approximately 15% until the end of the century. In a zero-management scenario the forest accumulates carbon both in the aboveground biomass and the soil. An extensive management strategy with moderate timber ex tractions every 50 years the carbon stocks in biomass and soil decline. A more intensive management scenario with extractions every 30 years leads to substantial losses of the soil and biomass carbon pools. In addition, the stand structure changes and the protective function of the forest is not sustainably ensured. Only at high prices for cembran pine timber and the availability of governmental subsidies for forest management timber production can be economically successful. The admixed European larch (Larix decidua) contributes only marginally. The main challenge are harvesting costs. The costs of timber extraction by a long-distance cableway logging system exceed the value of the harvested timber. Therefore, the intensification of forest management cannot be recommended from the perspective of timber production, sustainable forest management and protection against natural hazards. Leaving the forest unmanaged does not impose a particular threat to stand stability and is under the encountered situation a justified strategy