Trade-offs between ecosystem services: Water and carbon in a biodiversity hotspot
Carbon sequestration by afforestation can help mitigate global climate change but may have adverse environmental and economic impacts in some regions. For example, economic incentives for carbon sequestration may encourage the expansion of Pinus radiata timber plantations in the Fynbos biome of South Africa, with negative consequences for water supply and biodiversity. I built a dynamic ecological-economic model to investigate whether afforestation of a Fynbos catchment with Pinus radiata is economically viable when the potential benefits of carbon sequestration and timber production are balanced against the losses to water supply. I found that afforestation appears viable to the forestry industry under current water tariffs and current carbon accounting legislation, but would appear unviable if the forestry industry were to pay the true cost of water used by the plantations. I also found that under various plausible future economic scenarios, afforestation can be associated with either large future economic gains or losses, suggesting a need for future analyses based on branches of decision theory that deal with severe uncertainty. I conclude with a general recommendation that climate legislation should be explicit about the conditions under which afforestation for carbon sequestration of native vegetation is a legitimate climate mitigation strategy.
If 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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
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.:
- Martin L. Weitzman, 1998.
Harvard Institute of Economic Research Working Papers
1843, Harvard - Institute of Economic Research.
- S. Paltsev & J. Reilly & H. Jacoby & A. Gurgel & G. Metcalf & A. Sokolov & J. Holak, 2007.
"Assessment of U.S. Cap-and-Trade Proposals,"
0705, Massachusetts Institute of Technology, Center for Energy and Environmental Policy Research.
- Olschewski, Roland & Benitez, Pablo C., 2005. "Secondary forests as temporary carbon sinks? The economic impact of accounting methods on reforestation projects in the tropics," Ecological Economics, Elsevier, vol. 55(3), pages 380-394, November.
- Turpie, J.K. & Marais, C. & Blignaut, J.N., 2008. "The working for water programme: Evolution of a payments for ecosystem services mechanism that addresses both poverty and ecosystem service delivery in South Africa," Ecological Economics, Elsevier, vol. 65(4), pages 788-798, May.
- A. Caparrós & E. Cerdá & P. Ovando & P. Campos, 2007.
"Carbon Sequestration with Reforestations and Biodiversity-Scenic Values,"
2007.28, Fondazione Eni Enrico Mattei.
- Alejandro Caparrós & Emilio Cerdá & Paola Ovando & Pablo Campos, 2010. "Carbon Sequestration with Reforestations and Biodiversity-scenic Values," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 45(1), pages 49-72, January.
- Caparros, Alejandro & Jacquemont, Frederic, 2003. "Conflicts between biodiversity and carbon sequestration programs: economic and legal implications," Ecological Economics, Elsevier, vol. 46(1), pages 143-157, August.
- 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.
- Weitzman, Martin L., 1998. "Why the Far-Distant Future Should Be Discounted at Its Lowest Possible Rate," Journal of Environmental Economics and Management, Elsevier, vol. 36(3), pages 201-208, November.
- Turpie, Jane K., 2003. "The existence value of biodiversity in South Africa: how interest, experience, knowledge, income and perceived level of threat influence local willingness to pay," Ecological Economics, Elsevier, vol. 46(2), pages 199-216, September.
- Currie, Bianca & Milton, Suzanne J. & Steenkamp, J.C., 2009. "Cost-benefit analysis of alien vegetation clearing for water yield and tourism in a mountain catchment in the Western Cape of South Africa," Ecological Economics, Elsevier, vol. 68(10), pages 2574-2579, August.
When requesting a correction, please mention this item's handle: RePEc:eee:ecolec:v:69:y:2010:i:10:p:1973-1987. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shamier, Wendy)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.