IDEAS home Printed from https://ideas.repec.org/a/eee/foreco/v33y2018icp8-13.html
   My bibliography  Save this article

Negative leakage: The key role of forest management regimes

Author

Listed:
  • García, Jorge H.
  • Orlov, Anton
  • Aaheim, Asbjørn

Abstract

A model of two regions with a common wood market is introduced. Regions may be of two types, according to their forest management regime, namely managed forest plantations (M) and unmanaged open access forests (U). It is found that when regions are of the same type, unilateral climate policy in the forestry sector leads to (positive) carbon leakage. However, when regions are of different types, unilateral climate policy results in negative carbon leakage. Thus, policies aimed at increasing diversity in management regimes, within a wood market, stimulate the emergence of market forces that preserve and enhance forest carbon.

Suggested Citation

  • García, Jorge H. & Orlov, Anton & Aaheim, Asbjørn, 2018. "Negative leakage: The key role of forest management regimes," Journal of Forest Economics, Elsevier, vol. 33(C), pages 8-13.
    • Handle: RePEc:eee:foreco:v:33:y:2018:i:c:p:8-13
    DOI: 10.1016/j.jfe.2018.09.001
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1104689917300375
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jfe.2018.09.001?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Gunnar Köhlin & Peter J. Parks, 2001. "Spatial Variability and Disincentives to Harvest: Deforestation and Fuelwood Collection in South Asia," Land Economics, University of Wisconsin Press, vol. 77(2), pages 206-218.
    2. Tavoni, Massimo & Sohngen, Brent & Bosetti, Valentina, 2007. "Forestry and the carbon market response to stabilize climate," Energy Policy, Elsevier, vol. 35(11), pages 5346-5353, November.
    3. Asbjørn Aaheim & Anton Orlov & Rajiv Kumar Chaturvedi & Priya Joshi & Anitha Sagadevan & N.H. Ravindranath, 2018. "Lost benefits and carbon uptake by protection of Indian plantations," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 23(4), pages 485-505, April.
    4. Louise Aukland & Pedro Moura Costa & Sandra Brown, 2003. "A conceptual framework and its application for addressing leakage: the case of avoided deforestation," Climate Policy, Taylor & Francis Journals, vol. 3(2), pages 123-136, June.
    5. Michetti, Melania & Rosa, Renato, 2012. "Afforestation and timber management compliance strategies in climate policy. A computable general equilibrium analysis," Ecological Economics, Elsevier, vol. 77(C), pages 139-148.
    6. Gwenolé Le Velly & Alexandre Sauquet & Sergio Cortina-Villar, 2017. "PES Impact and Leakages over Several Cohorts: The Case of the PSA-H in Yucatan, Mexico," Land Economics, University of Wisconsin Press, vol. 93(2), pages 230-257.
    7. Gwenole Le Velly & Alexandre Sauquet & Sergio Cortina-Villar, 2017. "PES impact and leakages over several cohorts: the case of the PSA-H in Yucatan, Mexico," Post-Print hal-01594557, HAL.
    8. Onno Kuik & Reyer Gerlagh, 2003. "Trade Liberalization and Carbon Leakage," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3), pages 97-120.
    9. Onno Kuik, 2014. "REDD+ and international leakage via food and timber markets: a CGE analysis," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 19(6), pages 641-655, August.
    10. Philippe Delacote & Arild Angelsen, 2015. "Reducing Deforestation and Forest Degradation: Leakage or Synergy?," Land Economics, University of Wisconsin Press, vol. 91(3), pages 501-515.
    11. Gan, Jianbang & McCarl, Bruce A., 2007. "Measuring transnational leakage of forest conservation," Ecological Economics, Elsevier, vol. 64(2), pages 423-432, December.
    12. Böhringer, Christoph & Rosendahl, Knut Einar & Storrøsten, Halvor Briseid, 2017. "Robust policies to mitigate carbon leakage," Journal of Public Economics, Elsevier, vol. 149(C), pages 35-46.
    13. Jennifer M. Alix-Garcia & Elizabeth N. Shapiro & Katharine R. E. Sims, 2012. "Forest Conservation and Slippage: Evidence from Mexico’s National Payments for Ecosystem Services Program," Land Economics, University of Wisconsin Press, vol. 88(4), pages 613-638.
    14. Brian C. Murray & Bruce A. McCarl & Heng-Chi Lee, 2004. "Estimating Leakage from Forest Carbon Sequestration Programs," Land Economics, University of Wisconsin Press, vol. 80(1), pages 109-124.
    15. Brent Sohngen & Robert Mendelsohn, 2003. "An Optimal Control Model of Forest Carbon Sequestration," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(2), pages 448-457.
    16. Hoel Michael, 1994. "Efficient Climate Policy in the Presence of Free Riders," Journal of Environmental Economics and Management, Elsevier, vol. 27(3), pages 259-274, November.
    17. Delacote, Philippe & Robinson, Elizabeth J.Z. & Roussel, Sébastien, 2016. "Deforestation, leakage and avoided deforestation policies: A spatial analysis," Resource and Energy Economics, Elsevier, vol. 45(C), pages 192-210.
    18. Golombek, Rolf & Hagem, Cathrine & Hoel, Michael, 1995. "Efficient incomplete international climate agreements," Resource and Energy Economics, Elsevier, vol. 17(1), pages 25-46, May.
    19. Babiker, Mustafa H., 2005. "Climate change policy, market structure, and carbon leakage," Journal of International Economics, Elsevier, vol. 65(2), pages 421-445, March.
    20. Fischer, Carolyn & Salant, Stephen W., 2017. "Balancing the carbon budget for oil: The distributive effects of alternative policies," European Economic Review, Elsevier, vol. 99(C), pages 191-215.
    21. Alexander Popp & Florian Humpenöder & Isabelle Weindl & Benjamin Leon Bodirsky & Markus Bonsch & Hermann Lotze-Campen & Christoph Müller & Anne Biewald & Susanne Rolinski & Miodrag Stevanovic & Jan Ph, 2014. "Land-use protection for climate change mitigation," Nature Climate Change, Nature, vol. 4(12), pages 1095-1098, December.
    22. Kenneth M. Chomitz, 2002. "Baseline, leakage and measurement issues: how do forestry and energy projects compare?," Climate Policy, Taylor & Francis Journals, vol. 2(1), pages 35-49, March.
    23. Bård Harstad & Torben K. Mideksa, 2017. "Conservation Contracts and Political Regimes," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 84(4), pages 1708-1734.
    24. Ainembabazi, John Herbert & Angelsen, Arild, 2014. "Do commercial forest plantations reduce pressure on natural forests? Evidence from forest policy reforms in Uganda," Forest Policy and Economics, Elsevier, vol. 40(C), pages 48-56.
    25. Bård Harstad, 2012. "Buy Coal! A Case for Supply-Side Environmental Policy," Journal of Political Economy, University of Chicago Press, vol. 120(1), pages 77-115.
    26. Lea Fortmann & Brent Sohngen & Douglas Southgate, 2017. "Assessing the Role of Group Heterogeneity in Community Forest Concessions in Guatemala’s Maya Biosphere Reserve," Land Economics, University of Wisconsin Press, vol. 93(3), pages 503-526.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kaushal , Kevin R. & Rosendahl, Knut Einar, 2019. "Optimal REDD+ in the carbon market," Working Paper Series 3-2019, Norwegian University of Life Sciences, School of Economics and Business.
    2. Xinxin Liao & Zhuo Ning, 2022. "Welfare Implications of Border Carbon Adjustments on the Trade of Harvested Wood Products," IJERPH, MDPI, vol. 20(1), pages 1-16, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Pan, Wenqi & Kim, Man-Keun & Ning, Zhuo & Yang, Hongqiang, 2020. "Carbon leakage in energy/forest sectors and climate policy implications using meta-analysis," Forest Policy and Economics, Elsevier, vol. 115(C).
    2. Acosta, Montserrat & Sohngen, Brent, 2009. "How big is leakage from forestry carbon credits? Estimates from a Global Model," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49468, Agricultural and Applied Economics Association.
    3. Kaushal , Kevin R. & Rosendahl, Knut Einar, 2019. "Optimal REDD+ in the carbon market," Working Paper Series 3-2019, Norwegian University of Life Sciences, School of Economics and Business.
    4. Filewod, Ben & McCarney, Geoff, 2023. "Avoiding leakage from nature-based offsets by design," LSE Research Online Documents on Economics 117927, London School of Economics and Political Science, LSE Library.
    5. Filewod, Ben & McCarney, Geoff, 2023. "Avoiding leakage from nature-based offsets by design," LSE Research Online Documents on Economics 117928, London School of Economics and Political Science, LSE Library.
    6. Delacote, Philippe & Robinson, Elizabeth J.Z. & Roussel, Sébastien, 2016. "Deforestation, leakage and avoided deforestation policies: A spatial analysis," Resource and Energy Economics, Elsevier, vol. 45(C), pages 192-210.
    7. Wilman, Elizabeth A., 2019. "Market Redirection Leakage in the Palm Oil Market," Ecological Economics, Elsevier, vol. 159(C), pages 226-234.
    8. Gwenolé Le Velly & Alexandre Sauquet & Sergio Cortina-Villar, 2017. "PES Impact and Leakages over Several Cohorts: The Case of the PSA-H in Yucatan, Mexico," Land Economics, University of Wisconsin Press, vol. 93(2), pages 230-257.
    9. Philippe Delacote & Gwenolé Le Velly & Gabriela Simonet, 2020. "Distinguishing potential and effective additionality to revisit the location bias of REDD+ project," Working Papers hal-01954923, HAL.
    10. Stibniati Atmadja & Louis Verchot, 2012. "A review of the state of research, policies and strategies in addressing leakage from reducing emissions from deforestation and forest degradation (REDD+)," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 17(3), pages 311-336, March.
    11. Philippe Delacote & Gwenolé Le Velly & Gabriela Simonet, 2018. "A tale of REDD+ projects. How do location and certification impact additionality?," Working Papers 1808, Chaire Economie du climat.
    12. Jennifer M. Alix-Garcia & Elizabeth N. Shapiro & Katharine R. E. Sims, 2012. "Forest Conservation and Slippage: Evidence from Mexico’s National Payments for Ecosystem Services Program," Land Economics, University of Wisconsin Press, vol. 88(4), pages 613-638.
    13. Sébastien Desbureaux & Eric Nazindigouba Kere & Pascale Combes Motel, 2016. "Impact Evaluation in a Landscape: Protected Natural Forests, Anthropized Forested Lands and Deforestation Leakages in Madagascar's Rainforests," Working Papers halshs-01342182, HAL.
    14. Cathrine Hagem & Halvor Briseid Storrøsten, 2019. "Supply‐ versus Demand‐Side Policies in the Presence of Carbon Leakage and the Green Paradox," Scandinavian Journal of Economics, Wiley Blackwell, vol. 121(1), pages 379-406, January.
    15. Thomas Eichner & Gilbert Kollenbach & Mark Schopf, 2021. "Buying versus Leasing Fuel Deposits for Preservation," Scandinavian Journal of Economics, Wiley Blackwell, vol. 123(1), pages 110-143, January.
    16. Julien Xavier Daubanes & Fanny Henriet & Katheline Schubert, 2021. "Unilateral CO2 Reduction Policy with More Than One Carbon Energy Source," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 8(3), pages 543-575.
    17. Kuosmanen, Timo & Vöhringer, Frank & Dellink, Rob B., 2004. "A Proposal for the Attribution of Market Leakage to CDM Projects," HWWA Discussion Papers 262, Hamburg Institute of International Economics (HWWA).
    18. Onno Kuik, 2014. "REDD+ and international leakage via food and timber markets: a CGE analysis," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 19(6), pages 641-655, August.
    19. Bård Harstad, 2010. "Buy coal? Deposit markets prevent carbon leakage," NBER Working Papers 16119, National Bureau of Economic Research, Inc.
    20. Im, Eun Ho & Adams, Darius M. & Latta, Gregory S., 2007. "Potential impacts of carbon taxes on carbon flux in western Oregon private forests," Forest Policy and Economics, Elsevier, vol. 9(8), pages 1006-1017, May.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:foreco:v:33:y:2018:i:c:p:8-13. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/701775/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.