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Reinforcing Economic Incentives for Carbon Credits for Forests


  • Robert C. Cairns
  • Pierre Lasserre


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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    References listed on IDEAS

    1. Dasgupta, Partha & M Ler, Karl-G Ran, 2000. "Net national product, wealth, and social well-being," Environment and Development Economics, Cambridge University Press, vol. 5(01), pages 69-93, February.
    2. Robert Cairns & Pierre Lasserre, 2001. "Carbon Credits for Forests and Forest Products," Cahiers de recherche du Département des sciences économiques, UQAM 20-02, Université du Québec à Montréal, Département des sciences économiques.
    3. Gundimeda Haripriya, 2001. "Managing Forests in India to Mitigate Carbon," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 44(5), pages 701-720.
    4. Haripriya Gundimeda, 2001. "A Framework for Assessing Carbon Flow in Indian Wood Products," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 3(3), pages 229-251, September.
    5. 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.
    6. Cairns, Robert D., 2001. "Seeing the trees as a forest: what counts in green accounting," Ecological Economics, Elsevier, vol. 36(1), pages 61-69, January.
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    Cited by:

    1. 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.
    2. 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.

    More about this item


    carbon credit; forest; insurance; green accounting; accidental loss; crédits carbone; forêt; assurance; comptabilité verte; perte accidentelle;

    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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