Given the fact that the estimated present-day carbon storage of Northern Peatlands (NP) is about 300–500 petagram (PgC, 1 petagram = 10¹⁵ gram), and the NP has been subject to a slow but persistent growth over the Holocene epoch, it is desirable to include the NP in studies of Holocene carbon cycle dynamics. Here we use an Earth system Model of Intermediate Complexity to study the first-order effect of NP on global carbon cycle dynamics in the Holocene. We prescribe the reconstructed NP growth based on data obtained from numerous sites (located in Western Siberia, North America, and Finland) where peat accumulation records have been developed. Using an inverse method, we demonstrate that the long-term debates over potential source and/or sink of terrestrial ecosystem in the Holocene are clarified by using an inverse method, and our results suggest that the primary carbon source for the changes (sinks) of atmospheric and terrestrial carbon is the ocean, presumably, due to the deep ocean sedimentation pump (the so-called alkalinity pump). Our paper here complements ref. 1 by sensitivity tests using modified boundary conditions.