IDEAS home Printed from https://ideas.repec.org/a/eee/resene/v43y2016icp93-111.html
   My bibliography  Save this article

Agricultural landowners’ response to incentives for afforestation

Author

Listed:
  • Kim, Taeyoung
  • Langpap, Christian

Abstract

Previous research has shown that afforestation of agricultural land is a relatively low-cost option compared to energy-based approaches for mitigating net carbon dioxide emissions, and that financial incentives affect landowner behavior and can be used to increase carbon sequestration on private land. In this paper we use stated preference data from private landowners in the Pacific Northwest region of the U.S. to examine the key factors affecting participation in an incentive program for carbon sequestration through afforestation. We also estimate the corresponding potential for carbon sequestration and its cost. Our results suggest that incentive payments would significantly and positively affect landowners’ level of enrollment in a tree planting program.

Suggested Citation

  • Kim, Taeyoung & Langpap, Christian, 2016. "Agricultural landowners’ response to incentives for afforestation," Resource and Energy Economics, Elsevier, vol. 43(C), pages 93-111.
  • Handle: RePEc:eee:resene:v:43:y:2016:i:c:p:93-111
    DOI: 10.1016/j.reseneeco.2015.11.004
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0928765515000743
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.reseneeco.2015.11.004?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Lori Lynch & Sabrina J. Lovell, 2003. "Combining Spatial and Survey Data to Explain Participation in Agricultural Land reservation Programs," Land Economics, University of Wisconsin Press, vol. 79(2), pages 259-276.
    2. Sabina L. Shaikh & Lili Sun & G. Cornelis Van Kooten, 2007. "Are Agricultural Values a Reliable Guide in Determining Landowners' Decisions to Create Forest Carbon Sinks?," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 55(1), pages 97-114, March.
    3. Lubowski, Ruben N. & Plantinga, Andrew J. & Stavins, Robert N., 2006. "Land-use change and carbon sinks: Econometric estimation of the carbon sequestration supply function," Journal of Environmental Economics and Management, Elsevier, vol. 51(2), pages 135-152, March.
    4. Stern,Nicholas, 2007. "The Economics of Climate Change," Cambridge Books, Cambridge University Press, number 9780521700801.
    5. Christine A. Ervin & David E. Ervin, 1982. "Factors Affecting the Use of Soil Conservation Practices: Hypotheses, Evidence, and Policy Implications," Land Economics, University of Wisconsin Press, vol. 58(3), pages 277-292.
    6. Juha Siikamäki & David F. Layton, 2007. "Potential Cost-Effectiveness of Incentive Payment Programs for the Protection of Non-Industrial Private Forests," Land Economics, University of Wisconsin Press, vol. 83(4), pages 539-560.
    7. Jagannadha R. Matta & Janaki R. R. Alavalapati & D. Evan Mercer, 2009. "Incentives for Biodiversity Conservation Beyond the Best Management Practices: Are Forestland Owners Interested?," Land Economics, University of Wisconsin Press, vol. 85(1), pages 132-143.
    8. Jeffrey M Wooldridge, 2010. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262232588, December.
    9. Darius M. Adams & Ralph J. Alig & DBruce A. McCarl & John M. Callaway & Steven M. Winnett, 1999. "Minimum Cost Strategies for Sequestering Carbon in Forests," Land Economics, University of Wisconsin Press, vol. 75(3), pages 360-374.
    10. Christian Langpap, 2004. "Conservation Incentives Programs for Endangered Species: An Analysis of Landowner Participation," Land Economics, University of Wisconsin Press, vol. 80(3), pages 375-388.
    11. 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, January.
    12. Cho, Seong-Hoon & Newman, David H. & Bowker, J.M., 2005. "Measuring rural homeowners' willingness to pay for land conservation easements," Forest Policy and Economics, Elsevier, vol. 7(5), pages 757-770, August.
    13. Nagubadi, Venkatarao & McNamara, Kevin T. & Hoover, William L. & Mills, Walter L., 1996. "Program Participation Behavior of Nonindustrial Forest Landowners: A Probit Analysis," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 28(2), pages 323-336, December.
    14. Nagubadi, Venkatarao & McNamara, Kevin T. & Hoover, William L. & Mills, Walter L., Jr., 1996. "Program Participation Behvaior Of Nonindustrial Forest Landowners: A Probit Analysis," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 28(2), pages 1-14, December.
    15. Robert N. Stavins, 1999. "The Costs of Carbon Sequestration: A Revealed-Preference Approach," American Economic Review, American Economic Association, vol. 89(4), pages 994-1009, September.
    16. Bin Zhou & Kara Kockelman, 2008. "Neighborhood impacts on land use change: a multinomial logit model of spatial relationships," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 42(2), pages 321-340, June.
    17. Peter J. Parks & Ian W. Hardie, 1995. "Least-Cost Forest Carbon Reserves: Cost-Effective Subsidies to Convert Marginal Agricultural Land to Forests," Land Economics, University of Wisconsin Press, vol. 71(1), pages 122-136.
    18. Klaus Moeltner & David F. Layton, 2002. "A Censored Random Coefficients Model For Pooled Survey Data With Application To The Estimation Of Power Outage Costs," The Review of Economics and Statistics, MIT Press, vol. 84(3), pages 552-561, August.
    19. Douglas J. Miller, 1999. "An Econometric Analysis of the Costs of Sequestering Carbon in Forests," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(4), pages 812-824.
    20. Bell, Caroline D. & Roberts, Roland K. & English, Burton C. & Park, William M., 1994. "A Logit Analysis Of Participation In Tennessee'S Forest Stewardship Program," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 26(2), pages 1-10, December.
    21. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    22. Ralph Alig & Darius Adams & Bruce McCarl & J. Callaway & Steven Winnett, 1997. "Assessing effects of mitigation strategies for global climate change with an intertemporal model of the U.S. forest and agriculture sectors," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 9(3), pages 259-274, April.
    23. J. Callaway & Bruce McCarl, 1996. "The economic consequences of substituting carbon payments for crop subsidies in U.S. agriculture," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 7(1), pages 15-43, January.
    24. G. Cornelis van Kooten & Sabina Lee Shaikh & Pavel Suchánek, 2002. "Mitigating Climate Change by Planting Trees: The Transaction Costs Trap," Land Economics, University of Wisconsin Press, vol. 78(4), pages 559-572.
    25. Mark L. Messonnier & John C. Bergstrom & Christopher M. Cornwell & R. Jeff Teasley & H. Ken Cordell, 2000. "Survey Response-Related Biases in Contingent Valuation: Concepts, Remedies, and Empirical Application to Valuing Aquatic Plant Management," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(2), pages 438-450.
    26. Gregory S. Amacher & Arun S. Malik & Robert G. Haight, 2005. "Not Getting Burned: The Importance of Fire Prevention in Forest Management," Land Economics, University of Wisconsin Press, vol. 81(2).
    27. Masashi Konoshima & Claire A. Montgomery & Heidi J. Albers & Jeffrey L. Arthur, 2008. "Spatial-Endogenous Fire Risk and Efficient Fuel Management and Timber Harvest," Land Economics, University of Wisconsin Press, vol. 84(3), pages 449-468.
    28. Shan Ma & Scott M. Swinton & Frank Lupi & Christina Jolejole-Foreman, 2012. "Farmers’ Willingness to Participate in Payment-for-Environmental-Services Programmes," Journal of Agricultural Economics, Wiley Blackwell, vol. 63(3), pages 604-626, September.
    29. Desvousges, William H. & Smith, V. Kerry & Fisher, Ann, 1987. "Option price estimates for water quality improvements: A contingent valuation study for the monongahela river," Journal of Environmental Economics and Management, Elsevier, vol. 14(3), pages 248-267, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Chuang, Tsai-Jen & Yen, Tian-Ming, 2017. "Public views on the value of forests in relation to forestation projects—A case study in central Taiwan," Forest Policy and Economics, Elsevier, vol. 78(C), pages 173-179.
    2. Chang, Hung-Hao & Lee, Brian & Hsieh, Yi-Ting, 2021. "Participation in afforestation programs and the distribution of forest farm income," Forest Policy and Economics, Elsevier, vol. 129(C).
    3. Donggeun Han & Donghee Yoo & Taeyoung Kim, 2023. "Analysis of social welfare impact of crop pest and disease damages due to climate change: a case study of dried red peppers," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-13, December.
    4. Claytor, Hannah S. & Clark, Christopher D. & Lambert, Dayton M. & Jensen, Kimberly L., 2018. "Cattle producer willingness to afforest pastureland and sequester carbon," Forest Policy and Economics, Elsevier, vol. 92(C), pages 43-54.
    5. Kaine, Geoff & Edwards, Peter & Polyakov, Maksym & Stahlmann-Brown, Philip, 2023. "Who knew afforestation was such a challenge? Motivations and impediments to afforestation policy in New Zealand," Forest Policy and Economics, Elsevier, vol. 154(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Taeyoung Kim & Christian Langpap, 2015. "Incentives for Carbon Sequestration Using Forest Management," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 62(3), pages 491-520, November.
    2. Jung, Martina, 2003. "The Role of Forestry Sinks in the CDM - Analysing the Effects of Policy Decisions on the Carbon Market," Discussion Paper Series 26293, Hamburg Institute of International Economics.
    3. Lubowski, Ruben N. & Plantinga, Andrew J. & Stavins, Robert N., 2006. "Land-use change and carbon sinks: Econometric estimation of the carbon sequestration supply function," Journal of Environmental Economics and Management, Elsevier, vol. 51(2), pages 135-152, March.
    4. Elberg Nielsen, Anne Sofie & Plantinga, Andrew J. & Alig, Ralph J., 2014. "Mitigating climate change through afforestation: New cost estimates for the United States," Resource and Energy Economics, Elsevier, vol. 36(1), pages 83-98.
    5. Oladipo S. Obembe & Nathan P. Hendricks, 2022. "Marginal cost of carbon sequestration through forest afforestation of agricultural land in the southeastern United States," Agricultural Economics, International Association of Agricultural Economists, vol. 53(S1), pages 59-73, November.
    6. van Kooten, G. Cornelis & Eagle, Alison J. & Manley, James G. & Smolak, Tara M., 2004. "How Costly Are Carbon Offsets? A Meta-Analysis Of Carbon Forest Sinks," Working Papers 18166, University of Victoria, Resource Economics and Policy.
    7. van Kooten, G. Cornelis & Sohngen, Brent, 2007. "Economics of Forest Ecosystem Carbon Sinks: A Review," International Review of Environmental and Resource Economics, now publishers, vol. 1(3), pages 237-269, September.
    8. Nielsen, Anne Sofie Elberg & Jacobsen, Jette Bredahl & Strange, Niels, 2018. "Landowner participation in forest conservation programs: A revealed approach using register, spatial and contract data," Journal of Forest Economics, Elsevier, vol. 30(C), pages 1-12.
    9. 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.
    10. Yemshanov, Denys & McCarney, Geoffrey R. & Hauer, Grant & Luckert, M.K. (Marty) & Unterschultz, Jim & McKenney, Daniel W., 2015. "A real options-net present value approach to assessing land use change: A case study of afforestation in Canada," Forest Policy and Economics, Elsevier, vol. 50(C), pages 327-336.
    11. Jung, Martina, 2003. "The Role of Forestry Sinks in the CDM - Analysing the Effects of Policy Decisions on the Carbon Market," HWWA Discussion Papers 241, Hamburg Institute of International Economics (HWWA).
    12. Stavins, Robert & Plantinga, Andrew & Lubowski, Ruben, 2005. "Land-Use Change and Carbon Sinks," RFF Working Paper Series dp-05-04, Resources for the Future.
    13. Gren, Ing-Marie & Carlsson, Mattias, 2012. "Revealed payments for biodiversity protection in Swedish forests," Forest Policy and Economics, Elsevier, vol. 23(C), pages 55-62.
    14. Latta, Gregory & Adams, Darius M. & Alig, Ralph J. & White, Eric, 2011. "Simulated effects of mandatory versus voluntary participation in private forest carbon offset markets in the United States," Journal of Forest Economics, Elsevier, vol. 17(2), pages 127-141, April.
    15. Rabotyagov, Sergey S. & Lin, Sonja, 2013. "Small forest landowner preferences for working forest conservation contract attributes: A case of Washington State, USA," Journal of Forest Economics, Elsevier, vol. 19(3), pages 307-330.
    16. Markowski-Lindsay, Marla & Stevens, Thomas & Kittredge, David B. & Butler, Brett J. & Catanzaro, Paul & Dickinson, Brenton J., 2011. "Barriers to Massachusetts forest landowner participation in carbon markets," Ecological Economics, Elsevier, vol. 71(C), pages 180-190.
    17. Newell, Richard G. & Stavins, Robert N., 2000. "Climate Change and Forest Sinks: Factors Affecting the Costs of Carbon Sequestration," Journal of Environmental Economics and Management, Elsevier, vol. 40(3), pages 211-235, November.
    18. Kim, Man-Keun & Peralta, Denis & McCarl, Bruce A., 2014. "Land-based greenhouse gas emission offset and leakage discounting," Ecological Economics, Elsevier, vol. 105(C), pages 265-273.
    19. Langpap, Christian, 2006. "Conservation of endangered species: Can incentives work for private landowners?," Ecological Economics, Elsevier, vol. 57(4), pages 558-572, June.
    20. Matthews, Stephen & O'Connor, Raymond & Plantinga, Andrew J., 2002. "Quantifying the impacts on biodiversity of policies for carbon sequestration in forests," Ecological Economics, Elsevier, vol. 40(1), pages 71-87, January.

    More about this item

    Keywords

    Afforestation; Carbon sequestration; Carbon supply function; Incentives; Stated preference;
    All these keywords.

    JEL classification:

    • Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:resene:v:43:y:2016:i:c:p:93-111. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/505569 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.