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Estimating the costs of REDD at the country level

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  • Pagiola, Stefano
  • Bosquet, Benoit

Abstract

Individual countries considering participating in a Reduced Emissions from Deforestation and Forest Degradation (REDD) mechanism need information on what it would cost them to reduce emissions from deforestation and forest degradation, and how to actually deliver those emissions reductions. Estimates of global average costs provide very little guidance in this regard. This paper aims to do two things. First, it tries to clarify some very important conceptual issues. What exactly are we asking when we ask what the 'cost' of REDD is? What kinds of costs should be included? Second, it tries to highlight some of the issues involved in properly estimating the costs of REDD. Such estimates would help them to assess issues such as (i) how many emission reductions they might potentially be able to 'sell' to a REDD mechanism at given prices; (ii) how much the country would benefit from such sales; (iii) how they might be able to actually reduce deforestation so as to generate these emissions reductions; (iv) how the costs and benefits of REDD would be distributed among different groups within the country; (v) what the budgetary implications would be for government agencies.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 13726.

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Date of creation: 24 Feb 2009
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Handle: RePEc:pra:mprapa:13726

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Keywords: Reduced Emissions from Deforestation and Forest Degradation; redd; deforestation; climate change;

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References

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  1. Pagiola, Stefano, 2008. "Payments for environmental services in Costa Rica," Ecological Economics, Elsevier, vol. 65(4), pages 712-724, May.
  2. William D. Nordhaus, 2006. "The "Stern Review" on the Economics of Climate Change," NBER Working Papers 12741, National Bureau of Economic Research, Inc.
  3. Andrew J. Plantinga & JunJie Wu, 2003. "Co-Benefits from Carbon Sequestration in Forests: Evaluating Reductions in Agricultural Externalities from an Afforestation Policy in Wisconsin," Land Economics, University of Wisconsin Press, vol. 79(1), pages 74-85.
  4. Selma Mahfouz & Richard Hemming & Michael Kell, 2002. "The Effectiveness of Fiscal Policy in Stimulating Economic Activity," IMF Working Papers 02/208, International Monetary Fund.
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Cited by:
  1. Thorsen, Bo Jellesmark & Bakkegaard, Riyong Kim & Palmer, Charles & Delacote, Philippe, 2014. "Unveiling information on opportunity costs in REDD: Who obtains the surplus when policy objectives differ?," Economics Papers from University Paris Dauphine 123456789/12951, Paris Dauphine University.
  2. Lykke Andersen & Jonah Busch & Elizabeth Curran & Juan Carlos Ledezma & Joaquín Mayorga & Pablo Ruiz, 2012. "Impactos socio-económicos y ambientales de compensaciones por la reducción de emisiones de deforestación en Bolivia: Resultados del modelo OSIRIS-Bolivia," Development Research Working Paper Series 05/2012, Institute for Advanced Development Studies.
  3. Bottazzi, Patrick & Cattaneo, Andrea & Rocha, David Crespo & Rist, Stephan, 2013. "Assessing sustainable forest management under REDD+: A community-based labour perspective," Ecological Economics, Elsevier, vol. 93(C), pages 94-103.
  4. Barton, D.N. & Rusch, G. & May, P. & Ring, I. & Unnerstall, H. & Santos, R. & Antunes, P. & Brouwer, R. & Grieg-Gran, M. & Similä, J. & Primmer, E. & Romeiro, A. & DeClerck, F. & Ibrahim, M., 2009. "Assessing the role of economic instruments in a policy mix for biodiversity conservation and ecosystem services provision: a review of some methodological challenges," MPRA Paper 15554, University Library of Munich, Germany.

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