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Climate and forests: The tradeoff between forests as a source for producing bioenergy and as a carbon sink

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  • Hoel, Michael
  • Sletten, Thea Marcelia

Abstract

Forest harvests are a possible source of second-generation wood-based bioenergy. The carbon stored in the forest is highest when there is little or no harvest from the forest. Increasing the harvest from a forest, in order to produce more bioenergy, may thus conflict with the direct benefit of the forest as a carbon sink. We analyze this conflict using a simple model where bioenergy and fossil energy are perfect substitutes. Our analysis shows how the social optimum will depend on the size of the climate cost, and how the social optimum may be obtained by suitable taxes and subsidies.

Suggested Citation

  • Hoel, Michael & Sletten, Thea Marcelia, 2016. "Climate and forests: The tradeoff between forests as a source for producing bioenergy and as a carbon sink," Resource and Energy Economics, Elsevier, vol. 43(C), pages 112-129.
    • Handle: RePEc:eee:resene:v:43:y:2016:i:c:p:112-129
    DOI: 10.1016/j.reseneeco.2015.11.005
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    7. Bahel, Eric & Marrouch, Walid & Gaudet, Gérard, 2013. "The economics of oil, biofuel and food commodities," Resource and Energy Economics, Elsevier, vol. 35(4), pages 599-617.
    8. Marc Gronwald & Ngo Van Long & Luise Röpke, 2013. "Simultaneous Supplies of Dirty and Green Fuels with Capacity Constraint: Is there a Green Paradox?," CESifo Working Paper Series 4360, CESifo.
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    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Michael Hoel & Michael Olaf Hoel, 2024. "The Path to Net Zero Emissions," CESifo Working Paper Series 10939, CESifo.
    2. Pang, Xi & Nordström, Eva-Maria & Böttcher, Hannes & Trubins, Renats & Mörtberg, Ulla, 2017. "Trade-offs and synergies among ecosystem services under different forest management scenarios – The LEcA tool," Ecosystem Services, Elsevier, vol. 28(PA), pages 67-79.
    3. Amigues, Jean-Pierre & Moreaux, Michel, 2018. "Competing Land Uses and Fossil Fuel, Optimal Energy Conversion Rates During the Transition Toward a Green Economy Under a Pollution Stock Constraint," TSE Working Papers 18-981, Toulouse School of Economics (TSE).
    4. Meng-Shiuh Chang & Chih-Chun Kung, 2018. "The greenhouse gas impact of bioenergy in developing economies: Evidence from Taiwan," Energy & Environment, , vol. 29(3), pages 315-332, May.
    5. Hoel, Michael, 2020. "The rise and fall of bioenergy," Journal of Environmental Economics and Management, Elsevier, vol. 101(C).
    6. Ziqiang Zhang & Jie He & Ming Huang & Wei Zhou, 2023. "Is Regulation Protection? Forest Logging Quota Impact on Forest Carbon Sinks in China," Sustainability, MDPI, vol. 15(18), pages 1-24, September.
    7. Guangyue Xu & Peter Schwarz & Xiaojing Shi & Nathan Duma, 2023. "Scenario Paths of Developing Forest Carbon Sinks for China to Achieve Carbon Neutrality," Land, MDPI, vol. 12(7), pages 1-19, June.
    8. Michael Olaf Hoel, 2018. "The Rise and Fall of Bioenergy," CESifo Working Paper Series 6971, CESifo.

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    More about this item

    Keywords

    Climate; Carbon; Bioenergy; Forests;
    All these keywords.

    JEL classification:

    • Q30 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - General
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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