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Does Inclusion of Landowners’ Non-Market Values Lower Costs of Creating Carbon Forest Sinks?

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Author Info
Sabina Shaikh
Pavel Suchánek
Lili Sun
G. Cornelis van Kooten

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Abstract

This research examines effects of various factors on farmer participation in agricultural tree plantations for economic, environmental, social and carbon-uptake purposes. Using data from a survey of Canadian agricultural landowners, a discrete choice random utility model is used to determine the probability of farmers’ participation and corresponding mean willingness to accept (WTA) compensation for a tree-planting program. WTA includes positive and negative nonmarket benefits to landowners from planting trees. Estimates of WTA are less than foregone agricultural rents, but average costs of creating carbon credits still exceed their projected value under a CO2-emissions trading scheme.

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File URL: http://web.uvic.ca/~kooten/REPA/WorkingPaper2003-03.pdf
File Format: application/pdf
File Function: Final version, 2003
Download Restriction: no

Publisher Info
Paper provided by University of Victoria, Department of Economics, Resource Economics and Policy Analysis Research Group in its series Working Papers with number 2003-03.

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Length: 30 pages
Date of creation: 2003
Date of revision:
Handle: RePEc:rep:wpaper:2003-03

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Related research
Keywords: Willingness to accept compensation for tree planting; afforestation; climate change;

Find related papers by JEL classification:
Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation
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

Cited by:
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  1. Shaikh, Sabina, 2005. "Does Uncertainty Matter: An Application to the Willingness to Pay to Reduce Swimming Bans in Chicago," 2005 Annual meeting, July 24-27, Providence, RI 19134, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
Statistics
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This page was last updated on 2009-12-2.

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