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Boreal Forest Carbon Sequestration Strategies: A Case Study of the Little Red River Cree First Nation Land Tenures

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  • Emina Krcmar
  • G. Cornelis van Kooten

Abstract

"In this paper, creation of carbon offset and emission reduction credits are examined from the perspective of the Little Red River Cree Nation (LRRCN), a forest tenure holder in northern Alberta. Carbon credits are produced under three scenarios: (1) carbon uptake in forest ecosystems, with postharvest waste left on site; (2) carbon uptake in forests and products; and (3) carbon uptake in forests with harvested fiber used for energy production. A mathematical programming model is used to solve for the minimum prices that cause the LRRCN to include production of carbon credits in its forest management and post-harvest processing strategies. If LRRCN is paid according to its costs of creating carbon credits, it will opt to use fiber for forest products as this provides the greatest earning potential. If LRRCN faces a fixed price for carbon credits, it will produce fiber for generating electricity in lieu of coal as this strategy has the lowest average cost. However, when costs of feedstock transportation and construction of a power plant are taken into account, carbon uptake in biomass and forest products turn out to be more competitive." Copyright 2005 Canadian Agricultural Economics Society.

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Bibliographic Info

Article provided by Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie in its journal Canadian Journal of Agricultural Economics.

Volume (Year): 53 (2005)
Issue (Month): 4 (December)
Pages: 325-341

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Handle: RePEc:bla:canjag:v:53:y:2005:i:4:p:325-341

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Cited by:
  1. G. Cornelis van Kooten & Susanna Laaksonen-Craig & Yichuan Wang, 2007. "Costs of Creating Carbon Offset Credits via Forestry Activities: A Meta-Regression Analysis," Working Papers 2007-03, University of Victoria, Department of Economics, Resource Economics and Policy Analysis Research Group.
  2. H. Brown, 2009. "Climate change and Ontario forests: Prospects for building institutional adaptive capacity," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 14(6), pages 513-536, August.
  3. McCarney, Geoffrey R. & Armstrong, Glen W. & Adamowicz, Wiktor L., 2006. "Implications Of A Market For Carbon On Timber And Non-Timber Values In An Uncertain World," Annual Meeting, May 25-28, 2006, Montreal, Quebec 34175, Canadian Agricultural Economics Society.

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