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Reinforcing Economic Incentives for Carbon Credits for Forests

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  • Robert C. Cairns
  • Pierre Lasserre

Abstract

Afforestation is a cost-effective way for some countries to meet part of their commitments under the Kyoto Protocol and its eventual extensions. Credits for carbon sequestration can be mediated through markets for emissions permits. Both new and old forests are subject to pestilence and fire, which are events that could release substantial, discrete quantities of carbon at irregular intervals. Permits markets, the use of green accounting, and insurance markets for sudden emmisions could increase the efficiency of the scheme and its attractiveness to potential participants. La plantation de forêts est une manière peu coûteuse pour certains pays de remplir leurs engagements à l'égard du Protocole de Kyoto et de ses extensions éventuelles. Les marchés pour les permis d'émissions peuvent s'assortir de crédits pour la séquestration de carbone. Tant les nouvelles que les anciennes forêts sont exposées aux incendies et aux invasions de parasites, qui peuvent se donner lieu à l'émission d'importantes quantités de gaz carbonique à intervalles irréguliers. Les marchés des permis et les marchés d'assurance, mis en ?uvre dans un cadre de comptabilité verte, peuvent rendre plus efficace et plus attrayant un système de crédits pour séquestration du carbone.

Suggested Citation

  • Robert C. Cairns & Pierre Lasserre, 2004. "Reinforcing Economic Incentives for Carbon Credits for Forests," CIRANO Working Papers 2004s-12, CIRANO.
    • Handle: RePEc:cir:cirwor:2004s-12
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    File URL: https://cirano.qc.ca/files/publications/2004s-12.pdf
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    References listed on IDEAS

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    1. Ruolz Ariste & Pierre Lasserre, 2001. "La gestion optimale d’une forêt exploitée pour son potentiel de diminution des gaz à effet de serre et son bois," L'Actualité Economique, Société Canadienne de Science Economique, vol. 77(1), pages 27-51.
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    6. Reed, William J., 1984. "The effects of the risk of fire on the optimal rotation of a forest," Journal of Environmental Economics and Management, Elsevier, vol. 11(2), pages 180-190, June.
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    Cited by:

    1. Derek W. Thompson & Eric N. Hansen, 2012. "Institutional Pressures and an Evolving Forest Carbon Market," Business Strategy and the Environment, Wiley Blackwell, vol. 21(6), pages 351-369, September.
    2. Renata Martins Pacheco, 2022. "Carbon taxation as a means to incentivize forest and fire management," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(10), pages 12387-12403, October.
    3. Markowski-Lindsay, Marla & Stevens, Thomas & Kittredge, David B. & Butler, Brett J. & Catanzaro, Paul & Dickinson, Brenton J., 2011. "Barriers to Massachusetts forest landowner participation in carbon markets," Ecological Economics, Elsevier, vol. 71(C), pages 180-190.
    4. Ye Song & Hongjun Peng, 2019. "Strategies of Forestry Carbon Sink under Forest Insurance and Subsidies," Sustainability, MDPI, vol. 11(17), pages 1-13, August.
    5. Hongbo Sun & Xinting Zhang & Cuicui Luo, 2025. "A Review of Carbon Pricing Mechanisms and Risk Management for Raw Materials in Low-Carbon Energy Systems," Energies, MDPI, vol. 18(13), pages 1-17, June.
    6. Bull, Lyndall & Thompson, Derek, 2011. "Developing forest sinks in Australia and the United States -- A forest owner's prerogative," Forest Policy and Economics, Elsevier, vol. 13(5), pages 311-317, June.

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    JEL classification:

    • H00 - Public Economics - - General - - - General
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
    • Q29 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Other
    • Q38 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Government Policy (includes OPEC Policy)
    • Q39 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Other

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