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Mitigating Climate Change by Planting Trees: The Transaction Costs Trap

  • G. Cornelis van Kooten
  • Sabina Lee Shaikh
  • Pavel Suchánek

Land-use change and forestry projects are considered a low-cost option for addressing climate change mitigation. In Canada, afforestation is targeted to sequester enough carbon to meet one-fifth of its international obligations, and at lower cost than emissions reduction. We examine economic aspects of the institutions and incentives needed to encourage landowners in Canada to adopt tree planting on a large scale. Based on data from a survey of landowners, the transaction costs of getting landowners to convert their land from agriculture to plantation forests appear to be a significant obstacle, possibly increasing the costs of afforestation projects beyond what conventional economic analysis suggests.

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File URL: http://le.uwpress.org/cgi/reprint/78/4/559
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Article provided by University of Wisconsin Press in its journal Land Economics.

Volume (Year): 78 (2002)
Issue (Month): 4 ()
Pages: 559-572

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Handle: RePEc:uwp:landec:v:78:y:2002:i:4:p:559-572
Contact details of provider: Web page: http://le.uwpress.org/

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  1. Andrei Shleifer, 1998. "State versus Private Ownership," Journal of Economic Perspectives, American Economic Association, vol. 12(4), pages 133-150, Fall.
  2. G. Cornelis van Kooten, 2004. "Economic Dynamics of Tree Planting for Carbon Uptake on Marginal Agricultural Lands," Working Papers 2004-12, University of Victoria, Department of Economics, Resource Economics and Policy Analysis Research Group.
  3. Oliver Hart & John Moore, 1988. "Property Rights and the Nature of the Firm," Working papers 495, Massachusetts Institute of Technology (MIT), Department of Economics.
  4. Bell, Caroline D. & Roberts, Roland K. & English, Burton C. & Park, William M., 1994. "A Logit Analysis Of Participation In Tennessee'S Forest Stewardship Program," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 26(02), December.
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