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Modelling Forestry in Dynamic General Equilibrium

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  • Lennox, James A.
  • Turner, James A.
  • Daigneault, Adam J.
  • Jhunjhnuwala, K.

Abstract

Adequately representing dynamic characteristics of land use change and forestry in computable general equilibrium models is challenging but essential if modellers are to provide credible assessments of policies that directly or indirectly influence these phenomena. In this paper, we show how a dynamic representation of planted or naturally regenerating forests may be integrated within a neoclassical, intertemporal general equilibrium model. We demonstrate the application of such a model to assess the impacts of including forestry within a hypothetical emissions trading scheme in the US, showing the resulting changes in land use and increases in the optimal rotation length.

Suggested Citation

  • Lennox, James A. & Turner, James A. & Daigneault, Adam J. & Jhunjhnuwala, K., 2011. "Modelling Forestry in Dynamic General Equilibrium," 2011 Conference, August 25-26, 2011, Nelson, New Zealand 115409, New Zealand Agricultural and Resource Economics Society.
    • Handle: RePEc:ags:nzar11:115409
    DOI: 10.22004/ag.econ.115409
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    References listed on IDEAS

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    1. Christopher Galik & Megan Mobley & Daniel Richter, 2009. "A virtual “field test” of forest management carbon offset protocols: the influence of accounting," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 14(7), pages 677-690, October.
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    Keywords

    Crop Production/Industries; Environmental Economics and Policy;

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