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How well do tree plantations comply with the twin targets of the Clean Development Mechanism? -- The case of tree plantations in Tanzania

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  • Glomsrød, Solveig
  • Wei, Taoyuan
  • Liu, Gang
  • Aune, Jens B.

Abstract

The Clean Development Mechanism (CDM) of the Kyoto Protocol is supposed to provide both carbon mitigation and poverty reduction. This article reports from a model based study of market related carbon leakage and poverty reduction in the wake of a CDM tree-planting project in Tanzania. A tree plantation was incorporated in a computable general equilibrium (CGE) model with income differentiated household segments. The study focused on sensitivity of carbon leakage and income distribution to different project ownerships and carbon premium allocations. It turned out that the project value in terms of carbon premium has clear shortcomings as indicator of induced GDP growth and poverty alleviation. The non-poor rural and urban households benefit considerably more than the poor households. However, rising household income in all domestic project ownership arrangements increases demand for food, raises use of fertilizer and crop yields. A carbon cycle module for agricultural land use was incorporated in the CGE model, showing an increased carbon sequestration in agricultural soil, representing a negative leakage through markets in the range of 60-120% of the certified emissions reductions as registered in the CDM tree plantation project.

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  • Glomsrød, Solveig & Wei, Taoyuan & Liu, Gang & Aune, Jens B., 2011. "How well do tree plantations comply with the twin targets of the Clean Development Mechanism? -- The case of tree plantations in Tanzania," Ecological Economics, Elsevier, vol. 70(6), pages 1066-1074, April.
    • Handle: RePEc:eee:ecolec:v:70:y:2011:i:6:p:1066-1074
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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. Glomsrød, Solveig & Wei, Taoyuan & Liu, Gang & Aune, Jens B., 2011. "How well do tree plantations comply with the twin targets of the Clean Development Mechanism? -- The case of tree plantations in Tanzania," Ecological Economics, Elsevier, vol. 70(6), pages 1066-1074, April.
    3. Djanibekov, Utkur & Khamzina, Asia & Villamor, Grace B. & Lamers, John P.A., 2013. "Economic analysis of afforestation of marginal croplands in Uzbekistan," International Conference and Young Researchers Forum - Natural Resource Use in Central Asia: Institutional Challenges and the Contribution of Capacity Building 159089, University of Giessen (JLU Giessen), Center for International Development and Environmental Research.
    4. Huiying Ye & Qi Zhang & Xunzhang Pan & Arash Farnoosh, 2020. "Market-induced carbon leakage in China’s certified emission reduction projects," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 25(6), pages 987-1012, August.
    5. Djanibekov, Utkur & Djanibekov, Nodir & Khamzina, Asia, 2012. "CDM afforestation for managing water, energy and rural income nexus in irrigated drylands," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126765, International Association of Agricultural Economists.

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    More about this item

    Keywords

    Afforestation CDM CGE Leakage Poverty reduction Tanzania;

    JEL classification:

    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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