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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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    References listed on IDEAS

    as
    1. van Kooten, G. Cornelis & Eagle, Alison J. & Manley, James G. & Smolak, Tara M., 2004. "How Costly Are Carbon Offsets? A Meta-Analysis Of Carbon Forest Sinks," Working Papers 18166, University of Victoria, Resource Economics and Policy.
    2. Joseph A. Herriges & Catherine L. Kling, 1999. "Nonlinear Income Effects in Random Utility Models," The Review of Economics and Statistics, MIT Press, vol. 81(1), pages 62-72, February.
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    5. Bell, Caroline D. & Roberts, Roland K. & English, Burton C. & Park, William M., 1994. "A Logit Analysis Of Participation In Tennessee'S Forest Stewardship Program," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 26(2), pages 1-10, December.
    6. G. Cornelis van Kooten & Clark S. Binkley & Gregg Delcourt, 1995. "Effect of Carbon Taxes and Subsidies on Optimal Forest Rotation Age and Supply of Carbon Services," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(2), pages 365-374.
    7. G. Cornelis van Kooten & Sabina Lee Shaikh & Pavel Suchánek, 2002. "Mitigating Climate Change by Planting Trees: The Transaction Costs Trap," Land Economics, University of Wisconsin Press, vol. 78(4), pages 559-572.
    8. G. Cornelis van Kooten & Alison Eagle & James Manley & Tara Smolak, 2004. "How Costly are Carbon Offsets? A Meta-Analysis of Forest Carbon Sinks," Working Papers 2004-01, University of Victoria, Department of Economics, Resource Economics and Policy Analysis Research Group.
    9. Roger A. Sedjo & Gregg Marland, 2003. "Inter-trading permanent emissions credits and rented temporary carbon emissions offsets: some issues and alternatives," Climate Policy, Taylor & Francis Journals, vol. 3(4), pages 435-444, December.
    10. Chomitz, Kenneth M., 2000. "Evaluating carbon offsets from forestry and energy projects," Policy Research Working Paper Series 2357, The World Bank.
    Full references (including those not matched with items on IDEAS)

    Citations

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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).

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    More about this item

    Keywords

    Willingness to accept compensation for tree planting; afforestation; climate change;
    All these keywords.

    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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