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Can carbon accounting promote economic development in forest-dependent, indigenous communities?

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  • van Kooten, G. Cornelis
  • Nijnik, Maria
  • Bradford, Kimpton

Abstract

Forest-dependent, rural communities often experience declining populations and economic prosperity because technological changes related to harvesting, transportation and processing of wood fiber have increased the capital investments required while reducing employment. How then can communities, where forest resources are the primary economic driver, increase wealth that might then be used for economic development? Answers to this question are explored by examining the potential of different forest management regimes to create greater employment and wealth, particularly management options that include carbon values. Our application is to an interior forest region of British Columbia, the region that produces the greatest volume and value of lumber for export and the province where indigenous peoples have not ceded aboriginal title to most of the land base on which the trees grow. While traditional practices of managing forests primarily used to be multi-functional and sustainable, the results of our study are less optimistic. We examine the trade-offs and potential synergies between revenue (as measured by net present value), employment and carbon in forest ecosystems, where the latter is a proxy for the ecological health of the forest. We conclude that no management strategy is able to satisfy all of the technical, environmental and social/cultural constraints and, at the same time, offer forest-based economic development that will prevent the decline of rural communities.

Suggested Citation

  • van Kooten, G. Cornelis & Nijnik, Maria & Bradford, Kimpton, 2019. "Can carbon accounting promote economic development in forest-dependent, indigenous communities?," Forest Policy and Economics, Elsevier, vol. 100(C), pages 68-74.
  • Handle: RePEc:eee:forpol:v:100:y:2019:i:c:p:68-74
    DOI: 10.1016/j.forpol.2018.10.012
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    References listed on IDEAS

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    1. Kluvánková, Tatiana & Brnkaľáková, Stanislava & Špaček, Martin & Slee, Bill & Nijnik, Maria & Valero, Diana & Miller, David & Bryce, Rosalind & Kozová, Mária & Polman, Nico & Szabo, Tomáš & Gežík, Ver, 2018. "Understanding social innovation for the well-being of forest-dependent communities: A preliminary theoretical framework," Forest Policy and Economics, Elsevier, vol. 97(C), pages 163-174.
    2. Emina Krcmar & G. Cornelis van Kooten, 2008. "Economic Development Prospects of Forest-Dependent Communities: Analyzing Trade-offs Using a Compromise-Fuzzy Programming Framework," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(4), pages 1103-1117.
    3. van Kooten, G. Cornelis, 2018. "The Challenge of Mitigating Climate Change through Forestry Activities: What Are the Rules of the Game?," Ecological Economics, Elsevier, vol. 146(C), pages 35-43.
    4. Nijnik, Maria & Bizikova, Livia, 2008. "Responding to the Kyoto Protocol through forestry: A comparison of opportunities for several countries in Europe," Forest Policy and Economics, Elsevier, vol. 10(4), pages 257-269, February.
    5. Gregg Delcourt & Bill Wilson, 1998. "Forest Industry Employment: A Jurisdictional Comparison," Canadian Public Policy, University of Toronto Press, vol. 24(s2), pages 11-25, May.
    6. Johnston, Craig M.T. & Cornelis van Kooten, G., 2015. "Back to the past: Burning wood to save the globe," Ecological Economics, Elsevier, vol. 120(C), pages 185-193.
    7. Maria Nijnik & Guillaume Pajot, 2014. "Accounting for uncertainties and time preference in economic analysis of tackling climate change through forestry and selected policy implications for Scotland and Ukraine," Climatic Change, Springer, vol. 124(3), pages 677-690, June.
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    Cited by:

    1. Nijnik, Maria & Secco, Laura & Miller, David & Melnykovych, Mariana, 2019. "Can social innovation make a difference to forest-dependent communities?," Forest Policy and Economics, Elsevier, vol. 100(C), pages 207-213.
    2. Ziegler, Rafael & Balzac-Arroyo, Josephine & Hölsgens, Rick & Holzgreve, Sarah & Lyon, Fergus & Spangenberg, Joachim H. & Thapa, Philipp P., 2022. "Social innovation for biodiversity: A literature review and research challenges," Ecological Economics, Elsevier, vol. 193(C).

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