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Incentives for Carbon Sequestration Using Forest Management

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  • Taeyoung Kim

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  • Christian Langpap

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Abstract

This research uses an econometric model to analyze the factors affecting non-industrial private forest landowners’ choice of intermediate forest management practices, and to examine how these choices might change in response to incentives for carbon sequestration. We also use parameter estimates to simulate the carbon sequestration potential for different combinations of management practices, and compare the effectiveness and costs of carbon sequestration-based and practice-based incentive payment schemes. Our results suggest that incentive payments increase the probability that desirable combinations of management practices are adopted. Simulation results indicate that incentives targeting fertilization yield the highest carbon sequestration potential, and that a carbon-based payment scheme produces higher carbon sequestration than a practice-based payments scheme. Copyright Springer Science+Business Media Dordrecht 2015

Suggested Citation

  • Taeyoung Kim & Christian Langpap, 2015. "Incentives for Carbon Sequestration Using Forest Management," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 62(3), pages 491-520, November.
  • Handle: RePEc:kap:enreec:v:62:y:2015:i:3:p:491-520
    DOI: 10.1007/s10640-014-9827-3
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    References listed on IDEAS

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