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How effective are forests in mitigating climate change?

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  • van Kooten, G. Cornelis

Abstract

Nordhaus' DICE model is used to investigate the economics of planting trees on 900 million ha of lands that can be reforested or afforested, as proposed by a number of researchers. By looking at the most optimistic restoration case, a large terrestrial sink can reduce projected future temperatures by more than 30%, with accompanying smaller marginal damages. It also turns out that optimal levels of industrial emissions increase, thereby reducing the beneficial temperature response of the forestry investment. While the results appear optimistic, the forestry project takes too long to have an impact if climate change is considered to be an urgent problem. Based on the analysis, one can conclude that the forestry tool needs to be implemented immediately or not at all.

Suggested Citation

  • van Kooten, G. Cornelis, 2020. "How effective are forests in mitigating climate change?," Forest Policy and Economics, Elsevier, vol. 120(C).
    • Handle: RePEc:eee:forpol:v:120:y:2020:i:c:s1389934120302914
    DOI: 10.1016/j.forpol.2020.102295
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    References listed on IDEAS

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    1. William Nordhaus, 2018. "Evolution of modeling of the economics of global warming: changes in the DICE model, 1992–2017," Climatic Change, Springer, vol. 148(4), pages 623-640, June.
    2. Withey, Patrick & Johnston, Craig & Guo, Jinggang, 2019. "Quantifying the global warming potential of carbon dioxide emissions from bioenergy with carbon capture and storage," Renewable and Sustainable Energy Reviews, Elsevier, vol. 115(C).
    3. Zhen Xu & Carolyn E. Smyth & Tony C. Lemprière & Greg J. Rampley & Werner A. Kurz, 2018. "Climate change mitigation strategies in the forest sector: biophysical impacts and economic implications in British Columbia, Canada," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 23(2), pages 257-290, February.
    4. Nordhaus, William, 2013. "Integrated Economic and Climate Modeling," Handbook of Computable General Equilibrium Modeling, in: Peter B. Dixon & Dale Jorgenson (ed.), Handbook of Computable General Equilibrium Modeling, edition 1, volume 1, chapter 0, pages 1069-1131, Elsevier.
    5. G. Cornelis van Kooten & Craig M.T. Johnston, 2016. "The Economics of Forest Carbon Offsets," Annual Review of Resource Economics, Annual Reviews, vol. 8(1), pages 227-246, October.
    6. Giacomo Grassi & Jo House & Frank Dentener & Sandro Federici & Michel den Elzen & Jim Penman, 2017. "The key role of forests in meeting climate targets requires science for credible mitigation," Nature Climate Change, Nature, vol. 7(3), pages 220-226, March.
    7. Johnston, Craig M.T. & Cornelis van Kooten, G., 2015. "Back to the past: Burning wood to save the globe," Ecological Economics, Elsevier, vol. 120(C), pages 185-193.
    8. William D. Nordhaus, 2017. "Evolution of Assessments of the Economics of Global Warming: Changes in the DICE model, 1992 – 2017," NBER Working Papers 23319, National Bureau of Economic Research, Inc.
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    Citations

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    Cited by:

    1. G. Cornelis van Kooten & Mark E. Eiswerth & Jonathon Izett & Alyssa R. Russell, 2021. "Climate Change and the Social Cost of Carbon: DICE Explained and Expanded," Working Papers 2021-01, University of Victoria, Department of Economics, Resource Economics and Policy Analysis Research Group.
    2. Soler, Rosina & Lorenzo, Cristian & González, Joel & Carboni, Lucas & Delgado, Juan & Díaz, Mayra & Toro Manríquez, Mónica D.R. & Alejandro, Huertas Herrera, 2021. "The politics behind scientific knowledge: Sustainable forest management in Latin America," Forest Policy and Economics, Elsevier, vol. 131(C).
    3. Chu, Long & Grafton, R. Quentin & Nguyen, Hai, 2022. "A global analysis of the break-even prices to reduce atmospheric carbon dioxide via forest plantation and avoided deforestation," Forest Policy and Economics, Elsevier, vol. 135(C).

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    More about this item

    Keywords

    Reforestation and carbon sequestration; DICE model; Industrial versus land-use emissions;
    All these keywords.

    JEL classification:

    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • F64 - International Economics - - Economic Impacts of Globalization - - - Environment
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics
    • Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry

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