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Carbon sequestration cost by afforestation in Taiwan

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  • Ching-Cheng Chang

Abstract

An agricultural sector model based on the principle of economic welfare maximization was modified to derive the supply schedules for carbon sequestered by afforestation in Taiwan. Competition for land between agricultural and forest enterprises provided the basis for simultaneous price determination in both sectors. The land-use shifts that occurred were based on comparisons of endogenously determined returns to cropland for alternative uses. The 1994 baseline results indicated that by reforestation on the idled forest land 5 million to 10 million metric tons of carbon could be sequestered at a annual cost of US$40–$46 per metric ton. Intensified land-use changes were observed in addition to cropland conversion. The cost per metric ton of carbon rose sharply when the sequestration target threshold was more than 15 million metric tons. Our empirical results also indicated that the current afforestation incentive program could achieve, at most, a target of 5 million metric tons. Copyright Springer Japan 1999

Suggested Citation

  • Ching-Cheng Chang, 1999. "Carbon sequestration cost by afforestation in Taiwan," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 2(3), pages 199-213, September.
    • Handle: RePEc:spr:envpol:v:2:y:1999:i:3:p:199-213
    DOI: 10.1007/BF03353911
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    1. Keith H. Coble & Ching-Cheng Chang & Bruce A. McCarl & Bobby R. Eddleman, 1992. "Assessing Economic Implications of New Technology: The Case of Cornstarch-Based Biodegradable Plastic," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 14(1), pages 33-43.
    2. Bruce A. McCarl & Thomas H. Spreen, 1980. "Price Endogenous Mathematical Programming As a Tool for Sector Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 62(1), pages 87-102.
    3. Bruce A. McCarl, 1982. "Cropping Activities in Agricultural Sector Models: A Methodological Proposal," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 64(4), pages 768-772.
    4. 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.
    5. 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.
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    1. Chang, Ching-Cheng, 2002. "The potential impact of climate change on Taiwan's agriculture," Agricultural Economics, Blackwell, vol. 27(1), pages 51-64, May.

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