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Would an Economy-Wide Carbon Tax Hinder or Help the Forest Sector? Insights from the French Forest Sector Model


  • Julien Barthès

    () (Office National des Forêts)

  • Franck Lecocq


  • Sylvain Caurla

    (Laboratoire d'Economie Forestière, INRA - AgroParisTech)

  • Philippe Delacote

    (Laboratoire d'Economie Forestière, INRA - AgroParisTech)

  • Ahmed Barkaoui

    (Laboratoire d'Economie Forestière, INRA - AgroParisTech)


It is often argued that forest sectors may benefit from the introduction of an economy-wide carbon tax. This is due to the fact that wood products have generally lower carbon content than their direct substitute. We test this assumption numerically using the French Forest Sector Model (Caurla et al., 2010). For most products reviewed in this exercise, the substitution effect between wood and non-wood substitutes dominates the revenue effect of the wood product prices, leading to overall gains for the forest sector. There is, however, one main caveat: the impact of the tax appears strongly dependent on the definition of the tax base, notably the underlying accounting norms related to carbon measurement.

Suggested Citation

  • Julien Barthès & Franck Lecocq & Sylvain Caurla & Philippe Delacote & Ahmed Barkaoui, 2012. "Would an Economy-Wide Carbon Tax Hinder or Help the Forest Sector? Insights from the French Forest Sector Model," Working Papers - Cahiers du LEF 2012-04, Laboratoire d'Economie Forestiere, AgroParisTech-INRA, revised Sep 2012.
  • Handle: RePEc:lef:wpaper:2012-04

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    Cited by:

    1. Caurla, Sylvain & Delacote, Philippe & Lecocq, Franck & Barthès, Julien & Barkaoui, Ahmed, 2013. "Combining an inter-sectoral carbon tax with sectoral mitigation policies: Impacts on the French forest sector," Journal of Forest Economics, Elsevier, vol. 19(4), pages 450-461.
    2. Caurla, Sylvain & Delacote, Philippe & Lecocq, Franck & Barkaoui, Ahmed, 2013. "Stimulating fuelwood consumption through public policies: An assessment of economic and resource impacts based on the French Forest Sector Model," Energy Policy, Elsevier, vol. 63(C), pages 338-347.

    More about this item


    Carbon Tax; Forest Sector Modeling; Product Substitution; Carbon Accounting.;

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming


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