Should forests be used as uncertain carbon sinks or uncertain fossil fuel substitutes in the EU Roadmap to 2050?
This study investigates the contribution of forest carbon sequestration to a cost-efficient EU climate policy from 2010 to 2050 under conditions of uncertainty. We note that there is a trade-off between sequestration and alternative uses of forests such as bioenergy and timber production. A dynamic and probabilistic cost-minimization model is developed, which includes fossil fuel use within the EU Emissions Trading System and forest management in the EU-27 countries. The results suggest that if policy makers wish to meet emissions targets with 80% certainty, this goal will be eight times more expensive than when they were unconcerned with uncertainty. Policy makers’ risk attitudes affect forest management strategy primarily through the inclusion of wood products, where potential carbon emissions reductions are high but also highly uncertain. Excluding wood products from a climate strategy can be expensive if policy maker are insensitive to uncertainty.
|Date of creation:||12 Sep 2013|
|Date of revision:|
|Contact details of provider:|| Postal: Department of Economics, Box 7013, Swedish University of Agricultural Sciences, SE-750 07 Uppsala, Sweden|
Phone: 018-67 1724
Fax: 018-67 3502
Web page: http://www.slu.se/ekonomi
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- A. Charnes & W. W. Cooper, 1959. "Chance-Constrained Programming," Management Science, INFORMS, vol. 6(1), pages 73-79, October.
- Valentina Bosetti & Ruben Lubowski & Alexander Golub & Anil Markandya, 2009.
"Linking Reduced Deforestation and a Global Carbon Market: Impacts on Costs, Financial Flows, and Technological Innovation,"
2009.56, Fondazione Eni Enrico Mattei.
- Valentina Bosetti & Ruben Lubowski & Alexander Golub & Anil Markandya, 2010. "Linking Reduced Deforestation and a Global Carbon Market: Impacts on Costs, Financial Flows, and Technological Innovation," Working Papers 2009-01, BC3.
- Gren, Ing-Marie & Munnich, Miriam & Carlsson, Mattias & Elofsson, Katarina, 2009. "A numerical model for cost effective mitigation of CO2 in the EU with stochastic carbon sink," Department of Economics publications 9327, Swedish University of Agricultural Sciences, Department of Economics.
- Robert N. Stavins, 1999. "The Costs of Carbon Sequestration: A Revealed-Preference Approach," American Economic Review, American Economic Association, vol. 89(4), pages 994-1009, September.
- Newell, Richard G. & Stavins, Robert N., 2000.
"Climate Change and Forest Sinks: Factors Affecting the Costs of Carbon Sequestration,"
Journal of Environmental Economics and Management,
Elsevier, vol. 40(3), pages 211-235, November.
- Stavins, Robert, 2000. "limate Change and Forest Sinks: Factors Affecting the Costs of Carbon Sequestration," Working Paper Series rwp00-001, Harvard University, John F. Kennedy School of Government.
- Stavins, Robert & Newell, Richard, 1999. "Climate Change and Forest Sinks: Factors Affecting the Costs of Carbon Sequestration," Discussion Papers dp-99-31-rev, Resources For the Future.
- Geijer, Erik & Bostedt, Göran & Brännlund, Runar, 2011. "Damned if you do, damned if you do not--Reduced Climate Impact vs. Sustainable Forests in Sweden," Resource and Energy Economics, Elsevier, vol. 33(1), pages 94-106, January.
- Schlegel Stephanie & Kaphengst Timo, 2007. "European Union Policy on Bioenergy and the Role of Sustainability Criteria and Certification Systems," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 5(2), pages 1-19, December.
- Gren, Ing-Marie & Carlsson, Mattias & Elofsson, Katarina & Munnich, Miriam, 2012. "Stochastic carbon sinks for combating carbon dioxide emissions in the EU," Energy Economics, Elsevier, vol. 34(5), pages 1523-1531.
When requesting a correction, please mention this item's handle: RePEc:hhs:slueko:2013_008. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Elizabeth Hillerius)
If references are entirely missing, you can add them using this form.