Climate Change and the Cost of Carbon Sequestration: The Case of Forest Management
AbstractThe Kyoto protocol allows Annex I countries to deduct carbon sequestered by land use, land-use change and forestry from their national carbon emissions. Thornley and Cannell (2000) demonstrated that the objectives of maximizing timber and carbon sequestration are not complementary. Based on this finding, this paper determines the optimal selective management regime taking into account the underlying biophysical and economic processes. The results show that the net benefits of carbon storage only compensate the decrease in net benefits of timber production once the carbon price has exceeded a certain threshold value. The sequestration costs are significantly lower than previous estimates.
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Bibliographic InfoPaper provided by Barcelona Graduate School of Economics in its series Working Papers with number 329.
Date of creation: Jan 2008
Date of revision:
Kyoto protocol; forest management; selective logging; carbon sequestration; dynamic optimization.;
Find related papers by JEL classification:
- C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
- Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry
- Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters
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- Tassone, Valentina C. & Wesseler, Justus & Nesci, Francesco S., 2004. "Diverging incentives for afforestation from carbon sequestration: an economic analysis of the EU afforestation program in the south of Italy," Forest Policy and Economics, Elsevier, vol. 6(6), pages 567-578, October.
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- Xabadia, Angels & Goetz, Renan U., 2010.
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- Angels Xabadia & Renan U. Goetz, 2008. "The Optimal Selective Logging Regime and the Faustmann Formula," Working Papers 353, Barcelona Graduate School of Economics.
- van 't Veld, Klaas & Plantinga, Andrew, 2005. "Carbon sequestration or abatement? The effect of rising carbon prices on the optimal portfolio of greenhouse-gas mitigation strategies," Journal of Environmental Economics and Management, Elsevier, vol. 50(1), pages 59-81, July.
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- Renan Goetz & Angels Xabadia & Elena Calvo, 2011. "Optimal Forest Management in the Presence of Intraspecific Competition," Mathematical Population Studies, Taylor & Francis Journals, vol. 18(3), pages 151-171.
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