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How well do tree plantations comply with the twin targets of the Clean Development Mechanism? -- The case of tree plantations in Tanzania

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  • Glomsrød, Solveig
  • Wei, Taoyuan
  • Liu, Gang
  • Aune, Jens B.

Abstract

The Clean Development Mechanism (CDM) of the Kyoto Protocol is supposed to provide both carbon mitigation and poverty reduction. This article reports from a model based study of market related carbon leakage and poverty reduction in the wake of a CDM tree-planting project in Tanzania. A tree plantation was incorporated in a computable general equilibrium (CGE) model with income differentiated household segments. The study focused on sensitivity of carbon leakage and income distribution to different project ownerships and carbon premium allocations. It turned out that the project value in terms of carbon premium has clear shortcomings as indicator of induced GDP growth and poverty alleviation. The non-poor rural and urban households benefit considerably more than the poor households. However, rising household income in all domestic project ownership arrangements increases demand for food, raises use of fertilizer and crop yields. A carbon cycle module for agricultural land use was incorporated in the CGE model, showing an increased carbon sequestration in agricultural soil, representing a negative leakage through markets in the range of 60-120% of the certified emissions reductions as registered in the CDM tree plantation project.

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Bibliographic Info

Article provided by Elsevier in its journal Ecological Economics.

Volume (Year): 70 (2011)
Issue (Month): 6 (April)
Pages: 1066-1074

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Handle: RePEc:eee:ecolec:v:70:y:2011:i:6:p:1066-1074

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Web page: http://www.elsevier.com/locate/ecolecon

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Keywords: Afforestation CDM CGE Leakage Poverty reduction Tanzania;

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  1. Willy Makundi, 2001. "Potential and Cost of Carbon Sequestration in the Tanzanian Forest Sector," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 6(3), pages 335-353, September.
  2. RICHARD M. Adams & DARIUS M. Adams & JOHN M. Callaway & CHING-CHENG Chang & BRUCE A. Mccarl, 1993. "Sequestering Carbon On Agricultural Land: Social Cost And Impacts On Timber Markets," Contemporary Economic Policy, Western Economic Association International, vol. 11(1), pages 76-87, 01.
  3. Solveig Glomsrød & Wei Taoyuan, 2003. "Coal cleaning: A viable strategy for reduced carbon emissions and improved environment in China?," Discussion Papers 356, Research Department of Statistics Norway.
  4. Thurlow, James & Wobst, Peter, 2003. "Poverty-focused social accounting matrices for Tanzania," TMD discussion papers 112, International Food Policy Research Institute (IFPRI).
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Cited by:
  1. Anderson, Blake & M'Gonigle, Michael, 2012. "Does ecological economics have a future?," Ecological Economics, Elsevier, vol. 84(C), pages 37-48.
  2. Djanibekov, Utkur & Djanibekov, Nodir & Khamzina, Asia, 2012. "CDM afforestation for managing water, energy and rural income nexus in irrigated drylands," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126765, International Association of Agricultural Economists.

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