IDEAS home Printed from https://ideas.repec.org/a/eee/forpol/v116y2020ics138993411930677x.html
   My bibliography  Save this article

Impact on profitability, risk, optimum rotation age and afforestation of changing the New Zealand emissions trading scheme to an averaging approach

Author

Listed:
  • Manley, Bruce

Abstract

The current New Zealand Emissions Trading Scheme (ETS) allows forest growers to earn units under the stock change approach. Carbon price risk means that most participants are only trading safe units that they do not need to surrender after harvest provided that they replant. Consequently, the ETS has provided less incentive for afforestation than had been envisaged.

Suggested Citation

  • Manley, Bruce, 2020. "Impact on profitability, risk, optimum rotation age and afforestation of changing the New Zealand emissions trading scheme to an averaging approach," Forest Policy and Economics, Elsevier, vol. 116(C).
  • Handle: RePEc:eee:forpol:v:116:y:2020:i:c:s138993411930677x
    DOI: 10.1016/j.forpol.2020.102205
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S138993411930677X
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.forpol.2020.102205?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. Bösch, Matthias & Elsasser, Peter & Rock, Joachim & Rüter, Sebastian & Weimar, Holger & Dieter, Matthias, 2017. "Costs and carbon sequestration potential of alternative forest management measures in Germany," Forest Policy and Economics, Elsevier, vol. 78(C), pages 88-97.
    2. Manley, Bruce & Maclaren, Piers, 2012. "Potential impact of carbon trading on forest management in New Zealand," Forest Policy and Economics, Elsevier, vol. 24(C), pages 35-40.
    3. Manley, Bruce, 2018. "Forecasting the effect of carbon price and log price on the afforestation rate in New Zealand," Journal of Forest Economics, Elsevier, vol. 33(C), pages 112-120.
    4. 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.
    5. G. Cornelis van Kooten & Clark S. Binkley & Gregg Delcourt, 1995. "Effect of Carbon Taxes and Subsidies on Optimal Forest Rotation Age and Supply of Carbon Services," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(2), pages 365-374.
    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. Tor Håkon Jackson Inderberg & Ian Bailey, 2022. "Anchoring Policies, Alignment Tensions: Reconciling New Zealand’s Climate Change Act and Emissions Trading Scheme," Politics and Governance, Cogitatio Press, vol. 10(1), pages 290-301.
    2. Manley, Bruce, 2023. "Impact of carbon price on the relative profitability of production forestry and permanent forestry for New Zealand plantations," Forest Policy and Economics, Elsevier, vol. 156(C).

    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. Manley, Bruce, 2018. "Forecasting the effect of carbon price and log price on the afforestation rate in New Zealand," Journal of Forest Economics, Elsevier, vol. 33(C), pages 112-120.
    2. Manley, Bruce, 2023. "Impact of carbon price on the relative profitability of production forestry and permanent forestry for New Zealand plantations," Forest Policy and Economics, Elsevier, vol. 156(C).
    3. Gregmar Galinato & Shinsuke Uchida, 2010. "Evaluating Temporary Certified Emission Reductions in Reforestation and Afforestation Programs," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 46(1), pages 111-133, May.
    4. Guthrie, Graeme & Kumareswaran, Dinesh, 2003. "Carbon Subsidies and Optimal Forest Management," Working Paper Series 3879, Victoria University of Wellington, The New Zealand Institute for the Study of Competition and Regulation.
    5. Favero, Alice & Mendelsohn, Robert & Sohngen, Brent, 2016. "Carbon Storage and Bioenergy: Using Forests for Climate Mitigation," MITP: Mitigation, Innovation and Transformation Pathways 232215, Fondazione Eni Enrico Mattei (FEEM).
    6. Ovando, Paola & Caparrós, Alejandro, 2009. "Land use and carbon mitigation in Europe: A survey of the potentials of different alternatives," Energy Policy, Elsevier, vol. 37(3), pages 992-1003, March.
    7. Sohngen, Brent & Favero, Alice & Jin, Yufang & Huang, Yuhan, 2018. "Global cost estimates of forest climate mitigation with albedo: A new policy approach," 2018 Annual Meeting, August 5-7, Washington, D.C. 274307, Agricultural and Applied Economics Association.
    8. Roy Chowdhury, Pranab K. & Brown, Daniel G., 2023. "Modeling the effects of carbon payments and forest owner cooperatives on carbon storage and revenue in Pacific Northwest forestlands," Land Use Policy, Elsevier, vol. 131(C).
    9. Lintunen, Jussi & Uusivuori, Jussi, 2014. "On The Economics of Forest Carbon: Renewable and Carbon Neutral But Not Emission Free," Climate Change and Sustainable Development 165755, Fondazione Eni Enrico Mattei (FEEM).
    10. Lintunen, Jussi & Laturi, Jani & Uusivuori, Jussi, 2016. "How should a forest carbon rent policy be implemented?," Forest Policy and Economics, Elsevier, vol. 69(C), pages 31-39.
    11. Renan Ulrich Goetz & Natali Hritonenko & Ruben Mur & Àngels Xabadia & Yuri Yatsenko, 2008. "Climate Change and the Cost of Carbon Sequestration: The Case of Forest Management," Working Papers 329, Barcelona School of Economics.
    12. Tee, James & Scarpa, Riccardo & Marsh, Dan & Guthrie, Graeme, 2012. "Valuation of Carbon Forestry and the New Zealand Emissions Trading Scheme: A Real Options Approach Using the Binomial Tree Method," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 131066, International Association of Agricultural Economists.
    13. Indrajaya, Yonky & van der Werf, Edwin & Weikard, Hans-Peter & Mohren, Frits & van Ierland, Ekko C., 2016. "The potential of REDD+ for carbon sequestration in tropical forests: Supply curves for carbon storage for Kalimantan, Indonesia," Forest Policy and Economics, Elsevier, vol. 71(C), pages 1-10.
    14. Pohjola, Johanna & Laturi, Jani & Lintunen, Jussi & Uusivuori, Jussi, 2018. "Immediate and long-run impacts of a forest carbon policy—A market-level assessment with heterogeneous forest owners," Journal of Forest Economics, Elsevier, vol. 32(C), pages 94-105.
    15. Tommi Ekholm, 2015. "Optimal forest rotation age under efficient climate change mitigation," Papers 1505.05669, arXiv.org, revised Oct 2015.
    16. 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.
    17. van 't Veld, Klaas & Plantinga, Andrew, 2005. "Carbon sequestration or abatement? The effect of rising carbon prices on the optimal portfolio of greenhouse-gas mitigation strategies," Journal of Environmental Economics and Management, Elsevier, vol. 50(1), pages 59-81, July.
    18. repec:vuw:vuwscr:18975 is not listed on IDEAS
    19. Tommi Ekholm, 2019. "Optimal forest rotation under carbon pricing and forest damage risk," Papers 1912.00269, arXiv.org.
    20. Goetz, Renan Ulrich & Hritonenko, Natali & Mur, Ruben & Xabadia, Àngels & Yatsenko, Yuri, 2013. "Forest management for timber and carbon sequestration in the presence of climate change: The case of Pinus Sylvestris," Ecological Economics, Elsevier, vol. 88(C), pages 86-96.
    21. Ekholm, Tommi, 2016. "Optimal forest rotation age under efficient climate change mitigation," Forest Policy and Economics, Elsevier, vol. 62(C), pages 62-68.

    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:forpol:v:116:y:2020:i:c:s138993411930677x. 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/locate/forpol .

    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.