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Estimating the costs of REDD at the country level


  • Pagiola, Stefano
  • Bosquet, Benoit


Individual countries considering participating in a Reduced Emissions from Deforestation and Forest Degradation (REDD) mechanism need information on what it would cost them to reduce emissions from deforestation and forest degradation, and how to actually deliver those emissions reductions. Estimates of global average costs provide very little guidance in this regard. This paper aims to do two things. First, it tries to clarify some very important conceptual issues. What exactly are we asking when we ask what the 'cost' of REDD is? What kinds of costs should be included? Second, it tries to highlight some of the issues involved in properly estimating the costs of REDD. Such estimates would help them to assess issues such as (i) how many emission reductions they might potentially be able to 'sell' to a REDD mechanism at given prices; (ii) how much the country would benefit from such sales; (iii) how they might be able to actually reduce deforestation so as to generate these emissions reductions; (iv) how the costs and benefits of REDD would be distributed among different groups within the country; (v) what the budgetary implications would be for government agencies.

Suggested Citation

  • Pagiola, Stefano & Bosquet, Benoit, 2009. "Estimating the costs of REDD at the country level," MPRA Paper 13726, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:13726

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    References listed on IDEAS

    1. Andrew J. Plantinga & JunJie Wu, 2003. "Co-Benefits from Carbon Sequestration in Forests: Evaluating Reductions in Agricultural Externalities from an Afforestation Policy in Wisconsin," Land Economics, University of Wisconsin Press, vol. 79(1), pages 74-85.
    2. Selma Mahfouz & Richard Hemming & Michael Kell, 2002. "The Effectiveness of Fiscal Policy in Stimulating Economic Activity; A Review of the Literature," IMF Working Papers 02/208, International Monetary Fund.
    3. Pagiola, Stefano, 2008. "Payments for environmental services in Costa Rica," Ecological Economics, Elsevier, vol. 65(4), pages 712-724, May.
    4. William D. Nordhaus, 2006. "The "Stern Review" on the Economics of Climate Change," NBER Working Papers 12741, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Patrick Bottazzi & David Crespo & Harry Soria & Hy Dao & Marcelo Serrudo & Jean Paul Benavides & Stefan Schwarzer & Stephan Rist, 2014. "Carbon Sequestration in Community Forests: Trade-offs, Multiple Outcomes and Institutional Diversity in the Bolivian Amazon," Development and Change, International Institute of Social Studies, vol. 45(1), pages 105-131, January.
    2. Barton, D.N. & Rusch, G. & May, P. & Ring, I. & Unnerstall, H. & Santos, R. & Antunes, P. & Brouwer, R. & Grieg-Gran, M. & Similä, J. & Primmer, E. & Romeiro, A. & DeClerck, F. & Ibrahim, M., 2009. "Assessing the role of economic instruments in a policy mix for biodiversity conservation and ecosystem services provision: a review of some methodological challenges," MPRA Paper 15554, University Library of Munich, Germany.
    3. Bottazzi, Patrick & Cattaneo, Andrea & Rocha, David Crespo & Rist, Stephan, 2013. "Assessing sustainable forest management under REDD+: A community-based labour perspective," Ecological Economics, Elsevier, vol. 93(C), pages 94-103.
    4. Paunić, Alida, 2016. "Brazil, Preservation of Forest and Biodiversity," MPRA Paper 71462, University Library of Munich, Germany.
    5. Mattia Fosci, 2013. "The economic case for prioritizing governance over financial incentives in REDD+," Climate Policy, Taylor & Francis Journals, vol. 13(2), pages 170-190, March.
    6. Felardo, Jeff & Lippitt, Christopher D., 2016. "Spatial forest valuation: The role of location in determining attitudes toward payment for ecosystem services policies," Forest Policy and Economics, Elsevier, vol. 62(C), pages 158-167.
    7. Rakatama, Ari & Pandit, Ram & Ma, Chunbo & Iftekhar, Sayed, 2017. "The costs and benefits of REDD+: A review of the literature," Forest Policy and Economics, Elsevier, vol. 75(C), pages 103-111.
    8. Aquino, André & Guay, Bruno, 2013. "Implementing REDD+ in the Democratic Republic of Congo: An analysis of the emerging national REDD+ governance structure," Forest Policy and Economics, Elsevier, vol. 36(C), pages 71-79.
    9. Andersen, Lykke & Busch, Jonah & Curran, Elizabeth & Ledezma, Juan Carlos & Mayorga, Joaquín & Ruiz, Pablo, 2014. "Impactos socioeconómicos y ambientales de compensaciones por la reducción de emisiones de deforestación en Bolivia: resultados del modelo OSIRIS-Bolivia," Revista Latinoamericana de Desarrollo Economico, Instituto de Investigaciones Socio-Económicas (IISEC), Universidad Católica Boliviana, issue 22, pages 7-48, Noviembre.
    10. Delacote, Philippe & Palmer, Charles & Bakkegaard, Riyong Kim & Thorsen, Bo Jellesmark, 2014. "Unveiling information on opportunity costs in REDD: Who obtains the surplus when policy objectives differ?," Resource and Energy Economics, Elsevier, vol. 36(2), pages 508-527.
    11. Susanne Olbrisch & Erik Haites & Matthew Savage & Pradeep Dadhich & Manish Kumar Shrivastava, 2011. "Estimates of incremental investment for and cost of mitigation measures in developing countries," Climate Policy, Taylor & Francis Journals, vol. 11(3), pages 970-986, May.
    12. Cunha, Felipe Arias Fogliano de Souza & Börner, Jan & Wunder, Sven & Cosenza, Carlos Alberto Nunes & Lucena, André F.P., 2016. "The implementation costs of forest conservation policies in Brazil," Ecological Economics, Elsevier, vol. 130(C), pages 209-220.
    13. Abdul Aziz, Ammar & Dargusch, Paul & Phinn, Stuart & Ward, Adrian, 2015. "Using REDD+ to balance timber production with conservation objectives in a mangrove forest in Malaysia," Ecological Economics, Elsevier, vol. 120(C), pages 108-116.

    More about this item


    Reduced Emissions from Deforestation and Forest Degradation; redd; deforestation; climate change;

    JEL classification:

    • Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics

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