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Economic Dynamics of Tree Planting for Carbon Uptake on Marginal Agricultural Lands

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  • G. Cornelis van Kooten

Abstract

As a result of the 1997 Kyoto Protocol, afforestation of agricultural lands can be expected to take on an important role in the CO2-emissions reduction policy arsenal of some countries. To date, identification of suitable (marginal) agricultural lands has been left mainly to foresters, but their criteria fail to take into account economic nuances. In this study, an optimal control model is used to determine the optimal level of afforestation in the western Canada. The results indicate that, while planting fast–growing trees for carbon uptake on marginal agricultural land may be important, the path dynamics matter in determining whether Canada can rely on afforestation to meet its obligations under Kyoto.

Suggested Citation

  • G. Cornelis van Kooten, 2004. "Economic Dynamics of Tree Planting for Carbon Uptake on Marginal Agricultural Lands," Working Papers 2004-12, University of Victoria, Department of Economics, Resource Economics and Policy Analysis Research Group.
    • Handle: RePEc:rep:wpaper:2004-12
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    1. Darius M. Adams & Ralph J. Alig & DBruce A. McCarl & John M. Callaway & Steven M. Winnett, 1999. "Minimum Cost Strategies for Sequestering Carbon in Forests," Land Economics, University of Wisconsin Press, vol. 75(3), pages 360-374.
    2. Roger Sedjo & Joe Wisniewski & Alaric Sample & John Kinsman, 1995. "The economics of managing carbon via forestry: Assessment of existing studies," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 6(2), pages 139-165, September.
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    4. Douglas J. Miller, 1999. "An Econometric Analysis of the Costs of Sequestering Carbon in Forests," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(4), pages 812-824.
    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.
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    Cited by:

    1. Nana, Tian & Lu, Fadian, 2013. "Adaptive management decision of agroforestry under timber price risk," Journal of Forest Economics, Elsevier, vol. 19(2), pages 162-173.
    2. Pablo C. Benítez & Timo Kuosmanen & Roland Olschewski & G. Cornelis van Kooten, 2006. "Conservation Payments under Risk: A Stochastic Dominance Approach," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(1), pages 1-15.
    3. Djanibekov, Utkur & Khamzina, Asia & Djanibekov, Nodir & Lamers, John P.A., 2012. "How attractive are short-term CDM forestations in arid regions? The case of irrigated croplands in Uzbekistan," Forest Policy and Economics, Elsevier, vol. 21(C), pages 108-117.
    4. Caparros, Alejandro & Cerda, Emilio & Ovando, P. & Campos, Pablo, 2007. "Carbon Sequestration with Reforestations and Biodiversity-Scenic Values," Climate Change Modelling and Policy Working Papers 9323, Fondazione Eni Enrico Mattei (FEEM).
    5. Tassone, Valentina C. & Wesseler, Justus & Nesci, Francesco S., 2004. "Diverging incentives for afforestation from carbon sequestration: an economic analysis of the EU afforestation program in the south of Italy," Forest Policy and Economics, Elsevier, vol. 6(6), pages 567-578, October.
    6. Rämö, Janne & Tupek, Boris & Lehtonen, Heikki & Mäkipää, Raisa, 2023. "Towards climate targets with cropland afforestation – effect of subsidies on profitability," Land Use Policy, Elsevier, vol. 124(C).
    7. G. Cornelis van Kooten & Sabina Lee Shaikh & Pavel Suchánek, 2002. "Mitigating Climate Change by Planting Trees: The Transaction Costs Trap," Land Economics, University of Wisconsin Press, vol. 78(4), pages 559-572.
    8. Regan, Courtney M. & Connor, Jeffery D. & Summers, David M. & Settre, Claire & O’Connor, Patrick J. & Cavagnaro, Timothy R., 2020. "The influence of crediting and permanence periods on Australian forest-based carbon offset supply," Land Use Policy, Elsevier, vol. 97(C).
    9. Vass, Miriam Münnich & Elofsson, Katarina, 2016. "Is forest carbon sequestration at the expense of bioenergy and forest products cost-efficient in EU climate policy to 2050?," Journal of Forest Economics, Elsevier, vol. 24(C), pages 82-105.
    10. Giuseppe Di Vita & Manuela Pilato & Biagio Pecorino & Filippo Brun & Mario D’Amico, 2017. "A Review of the Role of Vegetal Ecosystems in CO 2 Capture," Sustainability, MDPI, vol. 9(10), pages 1-10, October.
    11. Caparros, Alejandro & Jacquemont, Frederic, 2003. "Conflicts between biodiversity and carbon sequestration programs: economic and legal implications," Ecological Economics, Elsevier, vol. 46(1), pages 143-157, August.
    12. Alejandro Caparrós & David Zilberman, 2010. "Optimal carbon sequestration path when different biological or physical sequestration," Working Papers 1018, Instituto de Políticas y Bienes Públicos (IPP), CSIC.
    13. G. Cornelis van Kooten & Alison Eagle, 2003. "Climate Change and Forest Ecosystem Sinks: Economic Analysis," Working Papers 2003-06, University of Victoria, Department of Economics, Resource Economics and Policy Analysis Research Group.
    14. Olschewski, Roland & Benítez, Pablo C. & de Koning, G.H.J. & Schlichter, Tomás, 2005. "How attractive are forest carbon sinks? Economic insights into supply and demand of Certified Emission Reductions," Journal of Forest Economics, Elsevier, vol. 11(2), pages 77-94, September.

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    More about this item

    Keywords

    Afforestation and climate change; optimal control model of land use; economics of carbon sequestration;
    All these keywords.

    JEL classification:

    • Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry
    • Q27 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Issues in International Trade
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns

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