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.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
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
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- 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.
- repec:reg:wpaper:225 is not listed on IDEAS
- Xabadia, Angels & Goetz, Renan U., 2010.
"The optimal selective logging regime and the Faustmann formula,"
Journal of Forest Economics,
Elsevier, vol. 16(1), pages 63-82, January.
- Angels Xabadia & Renan U. Goetz, 2008. "The Optimal Selective Logging Regime and the Faustmann Formula," Working Papers 353, Barcelona Graduate School of Economics.
- Creedy, John & Wurzbacher, Anke D., 2001.
"The economic value of a forested catchment with timber, water and carbon sequestration benefits,"
Elsevier, vol. 38(1), pages 71-83, July.
- Creedy, J. & Wurzbacher, A.D., 2000. "The Economic Value of a Forested Catchment with Timber, Water and Carbon Sequestration Benefits," Department of Economics - Working Papers Series 753, The University of Melbourne.
- Lubowski, Ruben & Plantinga, Andrew & Stavins, Robert, 2005.
"Land-Use Change and Carbon Sinks: Econometric Estimation of the Carbon Sequestration Supply Function,"
Working Paper Series
rwp05-001, Harvard University, John F. Kennedy School of Government.
- 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.
- 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.
- 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.
- Brent Sohngen & Robert Mendelsohn, 2003. "An Optimal Control Model of Forest Carbon Sequestration," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(2), pages 448-457.
- G. Cornelis van Kooten & Brent Sohngen, 2007.
"Economics of Forest Ecosystem Carbon Sinks: A Review,"
2007-02, University of Victoria, Department of Economics, Resource Economics and Policy Analysis Research Group.
- 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.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Bruno Guallar).
If references are entirely missing, you can add them using this form.