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Modelling Forestry in Dynamic General Equilibrium

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  • Lennox, James A.
  • Turner, James A.
  • Daigneault, Adam J.
  • Jhunjhnuwala, K.

Abstract

Adequately representing dynamic characteristics of land use change and forestry in computable general equilibrium models is challenging but essential if modellers are to provide credible assessments of policies that directly or indirectly influence these phenomena. In this paper, we show how a dynamic representation of planted or naturally regenerating forests may be integrated within a neoclassical, intertemporal general equilibrium model. We demonstrate the application of such a model to assess the impacts of including forestry within a hypothetical emissions trading scheme in the US, showing the resulting changes in land use and increases in the optimal rotation length.

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Bibliographic Info

Paper provided by Agricultural and Applied Economics Association in its series 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington with number 124943.

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Date of creation: 12 Aug 2012
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Handle: RePEc:ags:aaea12:124943

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Keywords: Intertemporal general equilibrium; optimal forest management; forest carbon credits; Resource /Energy Economics and Policy;

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  1. Christopher Galik & Megan Mobley & Daniel Richter, 2009. "A virtual “field test” of forest management carbon offset protocols: the influence of accounting," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 14(7), pages 677-690, October.
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