Intrinsic water-use efficiency (
iWUE) is affected by the balance of photosynthetic rate, stomatal conductance, and climate, along with many other exogenous factors, such as the CO
2 concentration in the atmosphere (CO
2atm), nutrients, and water holding capacity of the
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Intrinsic water-use efficiency (
iWUE) is affected by the balance of photosynthetic rate, stomatal conductance, and climate, along with many other exogenous factors, such as the CO
2 concentration in the atmosphere (CO
2atm), nutrients, and water holding capacity of the soil. The relative contributions of CO
2atm and climate to
iWUE are still incompletely understood, particularly for boreal forests where the climate is undergoing unprecedented warming. We combined δ
13C and δ
18O in tree rings from the Siberian larch (
Larix sibirica Ledeb.) in Northwestern China’s Altay Mountains, which receives 190 mm in annual precipitation, to detect the drivers of long-term
iWUE changes and their time-varying contributions over the past 222 years. A climate optimization approach was used to isolate the influence of climate from CO
2atm influence on
iWUE. We found that
iWUE increased about 33.6% from 1790 to 2011, and rising CO
2atm contributed 48.8% to this
iWUE increase. The contributions of CO
2atm and climate (drought conditions) varied during the study period 1790–2011. From 1790 to 1876, the climate was the most important factor contributing to the changes in
iWUE. From 1877 to 1972, CO
2atm was the main contributor; however, after 1973, the climate was again the dominant contributor to the increase in
iWUE, especially during 1996–2011. During the period 1996–2011, climate substantially (83%) contributed to the
iWUE increase. Our findings imply that, in the boreal forest in Northwestern China’s arid region,
iWUE experienced three changes: (1) the climate dominating from 1790 to 1876; (2) CO
2atm dominating from 1877 to 1972, and (3) climate dominating again during the past four decades. We observed that the relationships between
iWUE and tree-ring width shifted from positive to negative from 1996 onwards. These relationship changes indicate that CO
2atm-mediated effects of increasing
iWUE on tree growth are counteracted by climatic drought stress and
iWUE increase cannot counter the stress from drought on tree growth in China’s arid boreal forest.
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