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Carbon Credits for Forests and Forest Products

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Abstract

It is possible to make a current valuation of the effects of carbon dioxide which tracks a valuation done under the metric of expected present value and also tracks realized values. The implementation of a carbon credit scheme based on green accounting could go as follows: 1) At dates strictly between planned harvests, impute a credit of the value of carbon fixing through forest growth; it is possible to subtract from that credit a premium corresponding to an insurance against fire. 2) At dates when a fire occurs, do not make any debit if an insurance has been charged; otherwise impose a debit corresponding to the carbon value of the forest lost through fire. 3) At all dates, for each past harvest, impute a debit for the value of the current decay of forest products. 4) At the time of harvest, impute a discrete debit for the value of waste. L'évaluation des effets de verrouillage du gaz carbonique par la forêt et les produits forestiers fait intervenir des espérances mathématiques de valeurs futures. Pourtant nous montrons qu'on peut en faire la mesure à partir de valeurs courantes, ce qui suggère le système suivant d'attribution de crédits carbone. 1) Entre les dates des coupes, imputer un crédit correspondant à la valeur du carbone immobilisé par la croissance des arbres; éventuellement en soustraire un montant correspondant à une assurance contre les incendies. 2) Lorsque se produit un incendie, n'imputer aucun débit si la prime d'assurance a été déduite en 1); sinon déduire la valeur carbone de la forêt brûlée. 3) En toute date déduire la valeur des produits forestiers anciens dont le carbone est restitué à l'atmosphère. 4) Au moment des coupes imputer un débit correspondant aux déchets.

Suggested Citation

  • Robert Cairns & Pierre Lasserre, 2001. "Carbon Credits for Forests and Forest Products," Cahiers de recherche du Département des sciences économiques, UQAM 20-02, Université du Québec à Montréal, Département des sciences économiques.
  • Handle: RePEc:cre:uqamwp:20-02
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    Cited by:

    1. Cairns, Robert D. & Lasserre, Pierre, 2004. "Reinforcing economic incentives for carbon credits for forests," Forest Policy and Economics, Elsevier, vol. 6(3-4), pages 321-328, June.
    2. Claudio Forner & Frank Jotzo, 2002. "Future restrictions for sinks in the CDM How about a cap on supply?," Climate Policy, Taylor & Francis Journals, vol. 2(4), pages 353-365, December.

    More about this item

    Keywords

    Carbon credit; forest; green accounting; afforestation; deforestation; wood products - crédits carbone; forêt; comptabilité verte; déforestation; produits forestiers;
    All these keywords.

    JEL classification:

    • H00 - Public Economics - - General - - - General
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
    • Q29 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Other
    • Q38 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Government Policy (includes OPEC Policy)
    • Q39 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Other

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