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Policy options for afforestation in Flanders

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  • Ellen Moons
  • Sandra Rousseau

Abstract

This paper analyses current and alternative afforestation policy instruments in Flanders. First we select forest sites that maximize net social benefits given a constraint on the total area of new forests and then we select policy instruments that yield this optimal combination of sites. For each policy option, we calculate the associated costs for landowners and government as well as net social benefits for society. Our empirical illustration shows that the welfare gain is considerable if the afforestation subsidy is conditioned on an objective criterion rather than a case-by-case approach. Our results also show that it is worthwhile to consider alternative policy instruments, such as auctions, not previously used in Belgian legislation.

Suggested Citation

  • Ellen Moons & Sandra Rousseau, 2007. "Policy options for afforestation in Flanders," Working Papers Department of Economics ces0701, KU Leuven, Faculty of Economics and Business, Department of Economics.
  • Handle: RePEc:ete:ceswps:ces0701
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    References listed on IDEAS

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    1. Uwe Latacz-Lohmann & Carel Van der Hamsvoort, 1997. "Auctioning Conservation Contracts: A Theoretical Analysis and an Application," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(2), pages 407-418.
    2. Sandmo, Agnar, 2000. "The Public Economics of the Environment," OUP Catalogue, Oxford University Press, number 9780198297987.
    3. Mette Termansen & Colin J McClean & Hans Skov-Petersen, 2004. "Recreational site choice modelling using high-resolution spatial data," Environment and Planning A, Pion Ltd, London, vol. 36(6), pages 1085-1099, June.
    4. Kenneth J. Arrow & Anthony C. Fisher, 1974. "Environmental Preservation, Uncertainty, and Irreversibility," The Quarterly Journal of Economics, Oxford University Press, vol. 88(2), pages 312-319.
    5. Uwe Latacz-Lohmann & Ian Hodge, 2003. "European agri-environmental policy for the 21st century," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 47(1), pages 123-139, March.
    6. Tassone, Valentina C. & Wesseler, Justus & Nesci, Francesco S., 2004. "Diverging incentives for afforestation from carbon sequestration: an economic analysis of the EU afforestation program in the south of Italy," Forest Policy and Economics, Elsevier, vol. 6(6), pages 567-578, October.
    7. Jonathan D. Kaplan & Robert C. Johansson & Mark Peters, 2004. "The Manure Hits the Land: Economic and Environmental Implications When Land Application of Nutrients Is Constrained," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(3), pages 688-700.
    8. Garrod, G. D. & Willis, K. G., 1997. "The non-use benefits of enhancing forest biodiversity: A contingent ranking study," Ecological Economics, Elsevier, vol. 21(1), pages 45-61, April.
    9. Siobhan McCarthy & Alan Matthews & Brendan Riordan, 2002. "Determinants of Private Afforestation in the Republic of Ireland," Trinity Economics Papers 20023, Trinity College Dublin, Department of Economics.
    10. Jorgensen, Rune Mork & Thomsen, Hans & Vidal, ReneVictor Valqui, 1992. "The afforestation problem: A heuristic method based on simulated annealing," European Journal of Operational Research, Elsevier, vol. 56(2), pages 184-191, January.
    11. Raffaella Castagnini & Martina Menon & Federico Perali, 2004. "Extended and Full Incomes at the Household and Individual Level: An Application to Farm Households," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(3), pages 730-736.
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    Cited by:

    1. Ryan, Mary & O’Donoghue, Cathal & Upton, Vincent, 2014. "Land Use Change From Agriculture To Forestry: A Structural Model Of The Income And Leisure Choices Of Farmers," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182753, European Association of Agricultural Economists.

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    Keywords

    Afforestation / policy instruments / optimal location;

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