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Are Agricultural Values a Reliable Guide in Determining Landowners' Decisions to Create Forest Carbon Sinks?

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  • Sabina L. Shaikh
  • Lili Sun
  • G. Cornelis Van Kooten

Abstract

This research examines the effects of various factors on farmer participation in agricultural tree plantations for economic, environmental, social, and carbon‐uptake purposes, and potential costs of sequestering carbon through afforestation in western Canada. Using data from a survey of landowners, a discrete choice random utility model is used to determine the probability of landowners' participation in and corresponding mean willingness to accept (WTA) compensation for a tree‐planting program. WTA includes positive and negative benefits to landowners from planting trees, benefits not captured by foregone returns from agricultural activities on marginal land. Estimates of WTA are less than foregone returns, but even so average costs of creating carbon credits still exceed their projected value under a CO2‐emissions trading scheme. La présente étude a examiné les effets de divers facteurs sur la participation des producteurs agricoles à la plantation d'arbres à des fins économiques, environnementales, sociales et d'absorption du gaz carbonique, ainsi que les coûts potentiels de la séquestration du carbone au moyen du boisement dans l'Ouest canadien. À l'aide des données d'un sondage effectué auprès de propriétaires fonciers, nous avons utilisé un modèle d'utilité aléatoire à choix discrets pour déterminer la probabilité de participation des propriétaires fonciers à un programme de boisement et leur consentement à recevoir (CAR) une compensation financière pour leur participation. Le CAR inclut les avantages favorables et défavorables que le boisement procure aux propriétaires fonciers, des avantages non saisis par les revenus sacrifiés des activités agricoles sur des terres marginales. Les estimations du CAR sont inférieures aux revenus sacrifiés, mais malgré tout, les coûts moyens de la mise en uvre de programme de crédits pour le carbone demeurent supérieurs à leur valeur prévue dans un scénario d'échange de droits d'émission de CO2.

Suggested Citation

  • Sabina L. Shaikh & Lili Sun & G. Cornelis Van Kooten, 2007. "Are Agricultural Values a Reliable Guide in Determining Landowners' Decisions to Create Forest Carbon Sinks?," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 55(1), pages 97-114, March.
    • Handle: RePEc:bla:canjag:v:55:y:2007:i:1:p:97-114
    DOI: 10.1111/j.1744-7976.2007.00082.x
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    References listed on IDEAS

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    1. Krcmar, Emina & Nelson, Harry & van Kooten, G. Cornelis & Vertinsky, Ilan & Webb, Jim, 2005. "Can Forest Management Strategies Sustain The Development Needs Of The Little Red River Cree First Nation?," Working Papers 37012, University of Victoria, Resource Economics and Policy.
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    1. Claytor, Hannah S. & Clark, Christopher D. & Lambert, Dayton M. & Jensen, Kimberly L., 2018. "Cattle producer willingness to afforest pastureland and sequester carbon," Forest Policy and Economics, Elsevier, vol. 92(C), pages 43-54.
    2. Taeyoung Kim & Christian Langpap, 2015. "Incentives for Carbon Sequestration Using Forest Management," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 62(3), pages 491-520, November.
    3. Soto, Jose R. & Adams, Damian C., 2012. "Estimating the Supply of Forest Carbon Offsets: A Comparison of Best- Worst and Discrete Choice Valuation Methods," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124830, Agricultural and Applied Economics Association.
    4. Moss, Jonathan & Cacho, Oscar J., 2014. "Farm-scale analysis of the potential uptake of carbon offset activities," 2014 Conference, August 28-29, 2014, Nelson, New Zealand 187402, New Zealand Agricultural and Resource Economics Society.
    5. Adams, Thomas & Turner, James A., 2012. "An investigation into the effects of an emissions trading scheme on forest management and land use in New Zealand," Forest Policy and Economics, Elsevier, vol. 15(C), pages 78-90.
    6. Cathal Buckley & Stephen Hynes & Tom van Rensburg & Edel Doherty, 2008. "Access to farmland for walking in the Republic of Ireland – The attitude of landowners," Working Papers 0814, Rural Economy and Development Programme,Teagasc.
    7. Kim, Taeyoung & Langpap, Christian, 2016. "Agricultural landowners’ response to incentives for afforestation," Resource and Energy Economics, Elsevier, vol. 43(C), pages 93-111.
    8. Devkota, Nirmala & Paudel, Krishna P., 2009. "Production Termination As An Alternative To Mitigate Nutrient Pollution," 2009 Annual Meeting, January 31-February 3, 2009, Atlanta, Georgia 46826, Southern Agricultural Economics Association.
    9. Ross Kingwell, 2021. "Agriculture’s carbon‐neutral challenge: The case of Western Australia," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 65(3), pages 566-595, July.
    10. Buckley, Cathal & Hynes, Stephen & Mechan, Sarah, 2012. "Operating or not Operating at the Margin: Farmers Willingness to Adopt a Riparian Buffer Zone," Working Papers 148830, National University of Ireland, Galway, Socio-Economic Marine Research Unit.
    11. Kingwell, Ross S. & Harris-Adams, Keely, 2009. "An analysis of the spatial and temporal patterns of greenhouse gas emissions by agriculture in Western Australia and the opportunities for agroforestry offsets," 2009 Conference (53rd), February 11-13, 2009, Cairns, Australia 48161, Australian Agricultural and Resource Economics Society.
    12. Zhou, Mo, 2015. "Adapting sustainable forest management to climate policy uncertainty: A conceptual framework," Forest Policy and Economics, Elsevier, vol. 59(C), pages 66-74.
    13. Markowski-Lindsay, Marla & Stevens, Thomas & Kittredge, David B. & Butler, Brett J. & Catanzaro, Paul & Dickinson, Brenton J., 2011. "Barriers to Massachusetts forest landowner participation in carbon markets," Ecological Economics, Elsevier, vol. 71(C), pages 180-190.
    14. Graves, Rose A. & Nielsen-Pincus, Max & Haugo, Ryan D. & Holz, Andrés, 2022. "Forest carbon incentive programs for non-industrial private forests in Oregon (USA): Impacts of program design on willingness to enroll and landscape-scale program outcomes," Forest Policy and Economics, Elsevier, vol. 141(C).

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