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Does Inclusion of Landowners’ Non-Market Values Lower Costs of Creating Carbon Forest Sinks?

Author

Listed:
  • Sabina Shaikh
  • Pavel Suchánek
  • Lili Sun
  • G. Cornelis van Kooten

Abstract

This research examines effects of various factors on farmer participation in agricultural tree plantations for economic, environmental, social and carbon-uptake purposes. Using data from a survey of Canadian agricultural landowners, a discrete choice random utility model is used to determine the probability of farmers’ participation and corresponding mean willingness to accept (WTA) compensation for a tree-planting program. WTA includes positive and negative nonmarket benefits to landowners from planting trees. Estimates of WTA are less than foregone agricultural rents, but average costs of creating carbon credits still exceed their projected value under a CO2-emissions trading scheme.

Suggested Citation

  • Sabina Shaikh & Pavel Suchánek & Lili Sun & G. Cornelis van Kooten, 2003. "Does Inclusion of Landowners’ Non-Market Values Lower Costs of Creating Carbon Forest Sinks?," Working Papers 2003-03, University of Victoria, Department of Economics, Resource Economics and Policy Analysis Research Group.
    • Handle: RePEc:rep:wpaper:2003-03
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    File URL: https://web.uvic.ca/~repa/publications/REPA%20working%20papers/WorkingPaper2003-03.pdf
    File Function: Final version, 2003
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    Cited by:

    1. Shaikh, Sabina L., 2005. "Does Uncertainty Matter: An Application to the Willingness to Pay to Reduce Swimming Bans in Chicago," 2005 Annual meeting, July 24-27, Providence, RI 19134, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

    More about this item

    Keywords

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    JEL classification:

    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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