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Boreal Forest Carbon Sequestration Strategies: A Case Study of the Little Red River Cree First Nation Land Tenures

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  • Emina Krcmar
  • G. Cornelis Van Kooten

Abstract

In this paper, creation of carbon offset and emission reduction credits are examined from the perspective of the Little Red River Cree Nation (LRRCN), a forest tenure holder in northern Alberta. Carbon credits are produced under three scenarios: (1) carbon uptake in forest ecosystems, with postharvest waste left on site; (2) carbon uptake in forests and products; and (3) carbon uptake in forests with harvested fiber used for energy production. A mathematical programming model is used to solve for the minimum prices that cause the LRRCN to include production of carbon credits in its forest management and post‐harvest processing strategies. If LRRCN is paid according to its costs of creating carbon credits, it will opt to use fiber for forest products as this provides the greatest earning potential. If LRRCN faces a fixed price for carbon credits, it will produce fiber for generating electricity in lieu of coal as this strategy has the lowest average cost. However, when costs of feedstock transportation and construction of a power plant are taken into account, carbon uptake in biomass and forest products turn out to be more competitive. Dans le présent article, nous avons examiné la création de crédits de contrepartie de la fixation du carbone et de crédits de réduction des émissions du point de vue de la Little Red River Cree Nation (LRRCN), détenteur de tenure forestière dans le nord de l'Alberta. Les crédits carbone proviennent de trois scénarios: 1. l'absorption du carbone par les écosystèmes forestiers avec déchets laissés sur place après la récolte; 2. l'absorption du carbone par les forêts et les produits; 3. l'absorption du carbone par les forêts avec récolte des fibres pour la production d'énergie. Un modèle de programmation mathématique a été utilisé pour déterminer les prix minimum qui ont motivé la LRRCN à inclure la production de crédits carbone dans ses stratégies de gestion de la forêt et de transformation après la récolte. Si la LRRCN est rémunérée selon ses coûts de création de crédits carbone, elle choisira d'utiliser la fibre pour fabriquer des produits forestiers puisque cette activité génère des profits plus élevés. Si la LRRCN obtient un prix fixe pour ses crédits carbone, elle produira de la fibre pour la production d'électricité au lieu du charbon étant donné que cette stratégie a le coût moyen le plus faible. Toutefois, lorsque les coûts de transport des matières premières et les coûts de construction d'une centrale sont pris en considération, l'absorption du carbone par la biomasse et les produits forestiers deviennent plus concurrentiels.

Suggested Citation

  • Emina Krcmar & G. Cornelis Van Kooten, 2005. "Boreal Forest Carbon Sequestration Strategies: A Case Study of the Little Red River Cree First Nation Land Tenures," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 53(4), pages 325-341, December.
  • Handle: RePEc:bla:canjag:v:53:y:2005:i:4:p:325-341
    DOI: 10.1111/j.1744-7976.2005.00022.x
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    Cited by:

    1. H. Brown, 2009. "Climate change and Ontario forests: Prospects for building institutional adaptive capacity," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 14(6), pages 513-536, August.
    2. Zhen Xu & Carolyn E. Smyth & Tony C. Lemprière & Greg J. Rampley & Werner A. Kurz, 2018. "Climate change mitigation strategies in the forest sector: biophysical impacts and economic implications in British Columbia, Canada," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 23(2), pages 257-290, February.
    3. van Kooten, G. Cornelis & Laaksonen-Craig, Susanna & Wang, Yichuan, 2007. "Costs of Creating Carbon Offset Credits via Forestry Activities: A Meta-Regression Analysis," Working Papers 37039, University of Victoria, Resource Economics and Policy.
    4. van Kooten, G. Cornelis & Sohngen, Brent, 2007. "Economics of Forest Ecosystem Carbon Sinks: A Review," International Review of Environmental and Resource Economics, now publishers, vol. 1(3), pages 237-269, September.
    5. Benitez, Pablo C. & McCallum, Ian & Obersteiner, Michael & Yamagata, Yoshiki, 2007. "Global potential for carbon sequestration: Geographical distribution, country risk and policy implications," Ecological Economics, Elsevier, vol. 60(3), pages 572-583, January.
    6. McCarney, Geoffrey R. & Armstrong, Glen W. & Adamowicz, Wiktor L., 2006. "Implications Of A Market For Carbon On Timber And Non-Timber Values In An Uncertain World," Annual Meeting, 2006, May 25-28, Montreal, Quebec 34175, Canadian Agricultural Economics Society.

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