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How well do tree plantations comply with the twin targets of the Clean Development Mechanism? The case of tree plantations in Tanzania

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Abstract

This paper studies the effect of a CDM tree-planting project on carbon sequestration and urban and rural income distribution, taking economy-wide impacts into account. Carbon sequestration in agricultural soil is considered in addition to the carbon in the tree farm itself. The study points to that project designs that raise the general investment level may add substantially to the project's carbon capture by stimulating the productivity of agriculture, thus binding more carbon in soil. As demand for crops is rising, the mode of agricultural production turns more intensive and improved plant growth leaves more plant residues for uptake as soil organic carbon. As for the income effect, the non-poor benefit more than the poor in economic terms, except when the project is hosted by the rural poorest. Foreign owned projects withdrawing the project surplus may turn out to reduce the income of urban poor and does not enhance agricultural productivity and beyond-project carbon sequestration.

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  • Solveig Glomsrød & Gang Liu & Taoyuan Wei & Jens B. Aune, 2008. "How well do tree plantations comply with the twin targets of the Clean Development Mechanism? The case of tree plantations in Tanzania," Discussion Papers 534, Statistics Norway, Research Department.
    • Handle: RePEc:ssb:dispap:534
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    1. Wiig, Henrik & Aune, Jens B. & Glomsrod, Solveig & Iversen, Vegard, 2001. "Structural adjustment and soil degradation in Tanzania: A CGE model approach with endogenous soil productivity," Agricultural Economics, Blackwell, vol. 24(3), pages 263-287, March.
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    5. Thurlow, James & Wobst, Peter, 2003. "Poverty-focused social accounting matrices for Tanzania," TMD discussion papers 112, International Food Policy Research Institute (IFPRI).
    6. Chomitz, Kenneth M., 2000. "Evaluating carbon offsets from forestry and energy projects," Policy Research Working Paper Series 2357, The World Bank.
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    8. Glomsrød, Solveig & Wei, Taoyuan & Liu, Gang & Aune, Jens B., 2011. "How well do tree plantations comply with the twin targets of the Clean Development Mechanism? -- The case of tree plantations in Tanzania," Ecological Economics, Elsevier, vol. 70(6), pages 1066-1074, April.
    9. Louise Aukland & Pedro Moura Costa & Sandra Brown, 2003. "A conceptual framework and its application for addressing leakage: the case of avoided deforestation," Climate Policy, Taylor & Francis Journals, vol. 3(2), pages 123-136, June.
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    Cited by:

    1. Anderson, Blake & M'Gonigle, Michael, 2012. "Does ecological economics have a future?," Ecological Economics, Elsevier, vol. 84(C), pages 37-48.
    2. Glomsrød, Solveig & Wei, Taoyuan & Liu, Gang & Aune, Jens B., 2011. "How well do tree plantations comply with the twin targets of the Clean Development Mechanism? -- The case of tree plantations in Tanzania," Ecological Economics, Elsevier, vol. 70(6), pages 1066-1074, April.
    3. Huiying Ye & Qi Zhang & Xunzhang Pan & Arash Farnoosh, 2020. "Market-induced carbon leakage in China’s certified emission reduction projects," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 25(6), pages 987-1012, August.
    4. Djanibekov, Utkur & Khamzina, Asia & Villamor, Grace B. & Lamers, John P.A., 2013. "Economic analysis of afforestation of marginal croplands in Uzbekistan," International Conference and Young Researchers Forum - Natural Resource Use in Central Asia: Institutional Challenges and the Contribution of Capacity Building 159089, University of Giessen (JLU Giessen), Center for International Development and Environmental Research.
    5. Djanibekov, Utkur & Djanibekov, Nodir & Khamzina, Asia, 2012. "CDM afforestation for managing water, energy and rural income nexus in irrigated drylands," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126765, International Association of Agricultural Economists.

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    More about this item

    Keywords

    CDM; afforestation; poverty reduction; CGE; Tanzania;
    All these keywords.

    JEL classification:

    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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