Carbon sequestration is important for climate regulating. The monetary value of carbon sequestration is also critical to biomass utilization strategy. To estimate carbon sequestration ecosystem service, a static approach was available. A dynamic approach was also developed by integrating carbon dynamic model of ecosystems and carbon cycle model in the atmosphere. A case study in the Northern Shaanxi was conducted to compare the effect of the dynamic approach and the static approach on biomass utilization strategy. The available lands for retiring were identified by criteria of slopes≥15º. The carbon dynamics of the available lands were simulated by the CENTURY model under climate change scenarios RCP4.5 and RCP8.5. Under both climate change scenarios, the carbon storage significantly increased after the 100-year growth without any biomass harvest. The dynamic approach obtained significant high carbon sequestration benefit than the static approach in this study. The increment was over 80% under RCP4.5 and over 70% under RCP8.5. After the monetary valuation of carbon sequestration and biomass utilization, the possibility of biomass utilization strategy shifted from harvest to not harvest was increased in the dynamic approach. The increase in biomass price and the decrease in carbon price could increase the possibility of biomass collection.