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Simulated effects of mandatory versus voluntary participation in private forest carbon offset markets in the United States

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  • Latta, Gregory
  • Adams, Darius M.
  • Alig, Ralph J.
  • White, Eric

Abstract

Assumptions regarding landowner participation, whether mandatory or voluntary, are an important determinant in evaluating the implications of a carbon offset sales program. We modify an existing intertemporal optimization model of the US forest and agriculture sectors to allow optional involvement of private forest land in a carbon offset market and compare these results to a case in which all private land is enrolled. Our analysis of these two cases and various CO2e price levels indicate different responses in carbon stock and flux, forest land area and management, forest product prices, and forest conditions. The results suggest that the cost of sequestering carbon in US forests, using either a voluntary or mandatory carbon offset sales program, may be substantially higher than suggested by earlier studies.

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  • Latta, Gregory & Adams, Darius M. & Alig, Ralph J. & White, Eric, 2011. "Simulated effects of mandatory versus voluntary participation in private forest carbon offset markets in the United States," Journal of Forest Economics, Elsevier, vol. 17(2), pages 127-141, April.
    • Handle: RePEc:eee:foreco:v:17:y:2011:i:2:p:127-141
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    Cited by:

    1. Galik, Christopher S., 2015. "Exploring the determinants of emerging bioenergy market participation," Renewable and Sustainable Energy Reviews, Elsevier, vol. 47(C), pages 107-116.
    2. Latta, Gregory S. & Adams, Darius M. & Bell, Kathleen P. & Kline, Jeffrey D., 2016. "Evaluating land-use and private forest management responses to a potential forest carbon offset sales program in western Oregon (USA)," Forest Policy and Economics, Elsevier, vol. 65(C), pages 1-8.
    3. Miguel Riviere & Sylvain Caurla & Philippe Delacote, 2020. "Evolving Integrated Models From Narrower Economic Tools : the Example of Forest Sector Models," Post-Print hal-02512330, HAL.
    4. Nepal, Prakash & Ince, Peter J. & Skog, Kenneth E. & Chang, Sun J., 2013. "Forest carbon benefits, costs and leakage effects of carbon reserve scenarios in the United States," Journal of Forest Economics, Elsevier, vol. 19(3), pages 286-306.
    5. Cho, Seong-Hoon & Lee, Juhee & Roberts, Roland & Yu, Edward T. & Armsworth, Paul R., 2018. "Impact of market conditions on the effectiveness of payments for forest-based carbon sequestration," Forest Policy and Economics, Elsevier, vol. 92(C), pages 33-42.
    6. Cho, Seong-Hoon & Soh, Moonwon & English, Burton C. & Yu, T. Edward & Boyer, Christopher N., 2019. "Targeting payments for forest carbon sequestration given ecological and economic objectives," Forest Policy and Economics, Elsevier, vol. 100(C), pages 214-226.
    7. Elberg Nielsen, Anne Sofie & Plantinga, Andrew J. & Alig, Ralph J., 2014. "Mitigating climate change through afforestation: New cost estimates for the United States," Resource and Energy Economics, Elsevier, vol. 36(1), pages 83-98.
    8. Buongiorno, Joseph & Zhu, Shushuai, 2013. "Consequences of carbon offset payments for the global forest sector," Journal of Forest Economics, Elsevier, vol. 19(4), pages 384-401.
    9. Rose A Graves & Ryan D Haugo & Andrés Holz & Max Nielsen-Pincus & Aaron Jones & Bryce Kellogg & Cathy Macdonald & Kenneth Popper & Michael Schindel, 2020. "Potential greenhouse gas reductions from Natural Climate Solutions in Oregon, USA," PLOS ONE, Public Library of Science, vol. 15(4), pages 1-30, April.
    10. Latta, Gregory S. & Sjølie, Hanne K. & Solberg, Birger, 2013. "A review of recent developments and applications of partial equilibrium models of the forest sector," Journal of Forest Economics, Elsevier, vol. 19(4), pages 350-360.
    11. Soh, Moonwon & Cho, Seong-Hoon & Yu, Edward & Boyer, Christopher & English, Burton, 2018. "Targeting Payments for Ecosystem Services Given Ecological and Economic Objectives," 2018 Annual Meeting, February 2-6, 2018, Jacksonville, Florida 266502, Southern Agricultural Economics Association.
    12. Haim, David & White, Eric M. & Alig, Ralph J., 2014. "Permanence of agricultural afforestation for carbon sequestration under stylized carbon markets in the U.S," Forest Policy and Economics, Elsevier, vol. 41(C), pages 12-21.
    13. Miguel RIVIERE & Sylvain CAURLA, 2018. "Integrating non-timber objectives into bio-economic models of the forest sector: a review of recent innovations and current shortcomings," Working Papers of BETA 2018-26, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    14. Jianhong Mu & Anne Wein & Bruce McCarl, 2015. "Land use and management change under climate change adaptation and mitigation strategies: a U.S. case study," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 20(7), pages 1041-1054, October.
    15. Latta, Gregory S. & Baker, Justin S. & Beach, Robert H. & Rose, Steven K. & McCarl, Bruce A., 2013. "A multi-sector intertemporal optimization approach to assess the GHG implications of U.S. forest and agricultural biomass electricity expansion," Journal of Forest Economics, Elsevier, vol. 19(4), pages 361-383.
    16. Dumortier, Jerome & Elobeid, Amani, 2021. "Effects of a carbon tax in the United States on agricultural markets and carbon emissions from land-use change," Land Use Policy, Elsevier, vol. 103(C).
    17. Juutinen, Artti & Ahtikoski, Anssi & Lehtonen, Mika & Mäkipää, Raisa & Ollikainen, Markku, 2018. "The impact of a short-term carbon payment scheme on forest management," Forest Policy and Economics, Elsevier, vol. 90(C), pages 115-127.
    18. White, Eric M. & Latta, Greg & Alig, Ralph J. & Skog, Kenneth E. & Adams, Darius M., 2013. "Biomass production from the U.S. forest and agriculture sectors in support of a renewable electricity standard," Energy Policy, Elsevier, vol. 58(C), pages 64-74.
    19. Henderson, Jesse D. & Parajuli, Rajan & Abt, Robert C., 2020. "Biological and market responses of pine forests in the US Southeast to carbon fertilization," Ecological Economics, Elsevier, vol. 169(C).
    20. 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.

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