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Property rights and liability for deforestation under REDD+: Implications for 'permanence' in policy design

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  • Palmer, Charles

Abstract

Reducing Emissions from Deforestation and forest Degradation (REDD+) is critical in efforts to mitigate the effects of anthropogenic climate change. Despite uncertainty about the exact form of a future, international REDD+ system, REDD+ carbon property rights would need to be created and allocated with liability assigned for the potential loss of climate benefits in the event of carbon reversal from deforestation. This commentary explores the links between forest property rights and liability, to different REDD+ policy options and their implications for permanence. Should national governments retain liability for permanence then project-level activities that have individually-assigned REDD+ carbon rights may have a higher risk of carbon reversal than policies where rights are assigned to the state. Knowledge of pre-existing forest rights is necessary for some policies implemented with government-assigned REDD+ rights in order to compensate for potential income losses from policy implementation.

Suggested Citation

  • Palmer, Charles, 2011. "Property rights and liability for deforestation under REDD+: Implications for 'permanence' in policy design," Ecological Economics, Elsevier, vol. 70(4), pages 571-576, February.
  • Handle: RePEc:eee:ecolec:v:70:y:2011:i:4:p:571-576
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    References listed on IDEAS

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    1. Engel, Stefanie & Palmer, Charles, 2008. "Payments for environmental services as an alternative to logging under weak property rights: The case of Indonesia," Ecological Economics, Elsevier, vol. 65(4), pages 799-809, May.
    2. Pagiola, Stefano, 2008. "Payments for environmental services in Costa Rica," Ecological Economics, Elsevier, vol. 65(4), pages 712-724, May.
    3. Charles Palmer, 2005. "The Nature of Corruption in Forest Management," World Economics, World Economics, 1 Ivory Square, Plantation Wharf, London, United Kingdom, SW11 3UE, vol. 6(2), pages 1-10, April.
    4. Nicholas Stern, 2008. "The Economics of Climate Change," American Economic Review, American Economic Association, vol. 98(2), pages 1-37, May.
    5. Groom, Ben & Palmer, Charles, 2010. "Cost-effective provision of environmental services: the role of relaxing market constraints," Environment and Development Economics, Cambridge University Press, vol. 15(2), pages 219-240, April.
    6. Ian A. MacKenzie & Markus Ohndorf & Charles Palmer, 2010. "Enforcement-proof contracts with moral hazard in precaution: ensuring �permanence� in carbon sequestration," GRI Working Papers 27, Grantham Research Institute on Climate Change and the Environment.
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    Cited by:

    1. Anderson, Blake & M'Gonigle, Michael, 2012. "Does ecological economics have a future?," Ecological Economics, Elsevier, vol. 84(C), pages 37-48.
    2. Patrick Bottazzi & David Crespo & Harry Soria & Hy Dao & Marcelo Serrudo & Jean Paul Benavides & Stefan Schwarzer & Stephan Rist, 2014. "Carbon Sequestration in Community Forests: Trade-offs, Multiple Outcomes and Institutional Diversity in the Bolivian Amazon," Development and Change, International Institute of Social Studies, vol. 45(1), pages 105-131, January.
    3. Shaozeng Zhang, 2017. "From externality in economics to leakage in carbon markets: An anthropological approach to market making," Economic Anthropology, Wiley Blackwell, vol. 4(1), pages 132-143, January.
    4. Laing, Timothy & Palmer, Charles, 2015. "Economy-wide impacts of REDD when there is political influence," Resource and Energy Economics, Elsevier, vol. 40(C), pages 107-126.
    5. Qing Pei & Lanlan Liu & David Zhang, 2013. "Carbon emission right as a new property right: rescue CDM developers in China from 2012," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 13(3), pages 307-320, September.
    6. Mina Baliamoune-Lutz, 2017. "Trade and Environmental Quality in African Countries: Do Institutions Matter?," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 43(1), pages 155-172, January.
    7. West, Thales A.P. & Wilson, Chris & Vrachioli, Maria & Grogan, Kelly A., 2019. "Carbon payments for extended rotations in forest plantations: Conflicting insights from a theoretical model," Ecological Economics, Elsevier, vol. 163(C), pages 70-76.
    8. Mbatu, Richard S., 2015. "Domestic and international forest regime nexus in Cameroon: An assessment of the effectiveness of REDD+ policy design strategy in the context of the climate change regime," Forest Policy and Economics, Elsevier, vol. 52(C), pages 46-56.
    9. Bayer, Patrick & Marcoux, Christopher & Urpelainen, Johannes, 2013. "Leveraging private capital for climate mitigation: Evidence from the Clean Development Mechanism," Ecological Economics, Elsevier, vol. 96(C), pages 14-24.
    10. Gren, Ing-Marie & Zeleke, Abenezer Aklilu, 2016. "Policy design for forest carbon sequestration: A review of the literature," Forest Policy and Economics, Elsevier, vol. 70(C), pages 128-136.
    11. Zabel, Astrid & Bostedt, Göran & Ekvall, Hans, 2018. "Policies for forest landscape management – A conceptual approach with an empirical application for Swedish conditions," Forest Policy and Economics, Elsevier, vol. 86(C), pages 13-21.
    12. Liu, Zhaoyang & Gong, Yazhen & Kontoleon, Andreas, 2018. "How do Payments for Environmental Services Affect Land Tenure? Theory and Evidence From China," Ecological Economics, Elsevier, vol. 144(C), pages 195-213.
    13. Di Corato, Luca & Dosi, Cesare & Moretto, Michele, 2018. "Multidimensional auctions for long-term procurement contracts with early-exit options: The case of conservation contracts," European Journal of Operational Research, Elsevier, vol. 267(1), pages 368-380.
    14. Delacote, Philippe & Palmer, Charles & Bakkegaard, Riyong Kim & Thorsen, Bo Jellesmark, 2014. "Unveiling information on opportunity costs in REDD: Who obtains the surplus when policy objectives differ?," Resource and Energy Economics, Elsevier, vol. 36(2), pages 508-527.
    15. Fortmann, Lea & Cordero-Salas, Paula & Sohngen, Brent & Brian, Roe, 2016. "Incentive Contracts for Environmental Services and their Potential in REDD," International Review of Environmental and Resource Economics, now publishers, vol. 9(3-4), pages 363-409, September.
    16. Stefanie Engel & Charles Palmer & Luca Taschini & Simon Urech, 2012. "Cost-effective payments for reducing emissions from deforestation under uncertainty," GRI Working Papers 72, Grantham Research Institute on Climate Change and the Environment.
    17. Bluffstone, Randy & Robinson, Elizabeth & Guthiga, Paul, 2013. "REDD+and community-controlled forests in low-income countries: Any hope for a linkage?," Ecological Economics, Elsevier, vol. 87(C), pages 43-52.
    18. Alix-Garcia, Jennifer & Wolff, Hendrik, 2014. "Payment for Ecosystem Services from Forests," IZA Discussion Papers 8179, Institute of Labor Economics (IZA).
    19. Palmer, Charles & Taschini, Luca & Laing, Timothy, 2017. "Getting more ‘carbon bang’ for your ‘buck’ in Acre State, Brazil," Ecological Economics, Elsevier, vol. 142(C), pages 214-227.
    20. Bluffstone, Randy & Robinson, Elizabeth & Guthiga, Paul, 2012. "Deforestation and forest degradation are estimated to account for between 12 percent and 20 percent of annual greenhouse gas emissions. These activities, largely in the developing world, released abou," Discussion Papers dp-12-11-efd, Resources For the Future.
    21. Di Corato, Luca & Dosi, Cesare & Moretto, Michele, 2015. "Multidimensional auctions for long-term procurement contracts under the threat of early exit: the case of conservation auctions," Working Paper Series 2015:6, Swedish University of Agricultural Sciences, Department Economics.
    22. Ickowitz, Amy & Sills, Erin & de Sassi, Claudio, 2017. "Estimating Smallholder Opportunity Costs of REDD+: A Pantropical Analysis from Households to Carbon and Back," World Development, Elsevier, vol. 95(C), pages 15-26.
    23. Jespersen, Kristjan & Gallemore, Caleb, 2018. "The Institutional Work of Payments for Ecosystem Services: Why the Mundane Should Matter," Ecological Economics, Elsevier, vol. 146(C), pages 507-519.
    24. Boer, Henry James, 2018. "The role of government in operationalising markets for REDD+ in Indonesia," Forest Policy and Economics, Elsevier, vol. 86(C), pages 4-12.

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