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Rethinking Baselines: An Efficiency-based Approash to Better REDD+ Governance

Author

Listed:
  • Majah-Leah V. Ravago

    (University of the Philippines)

  • James A. Roumasset

    (University of Hawaii)

Abstract

We present an approach for determining dynamic baselines for Reducing Emissions from Deforestation and Degradation plus sequestration (REDD+) based on the efficient path of forest emissions absent carbon prices. We show that, unlike industrial emissions, baseline emission permits for forests should be negative. Positive entitlements for forest emissions are unnecessary and may be ineffective in the absence of additional governance mechanisms. A numerical illustration for the case of Indonesia shows that the potential gains from the efficiency-based approach are nearly twice those from conventional REDD+ proposals.

Suggested Citation

  • Majah-Leah V. Ravago & James A. Roumasset, 2015. "Rethinking Baselines: An Efficiency-based Approash to Better REDD+ Governance," Working Papers 201515, University of Hawaii at Manoa, Department of Economics.
    • Handle: RePEc:hai:wpaper:201515
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    File URL: http://www.economics.hawaii.edu/research/workingpapers/WP_15-15.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Governance; REDD+; deforestation; carbon emissions; sequestration; climate change;
    All these keywords.

    JEL classification:

    • Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics

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