Abstract
The use of forests as natural carbon capture and storage sinks is considered by introducing carbon sequestration benefits' accounting in a multi-vintage partial equilibrium land-use model, under different carbon price scenarios. The consequences to timber and land markets and to the profile of the carbon sequestration time path are examined in the short-run, long-run, and transition. Following IPCC, three carbon accounting methods are considered: the carbon flow, the ton-year crediting and the average storage. A full proof of long-run optimality of steady-state forest is provided. Numerical simulations are performed and results discussed illustrating the setup's potential.
Original language | English |
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Pages (from-to) | 148-170 |
Number of pages | 23 |
Journal | Resource and Energy Economics |
Volume | 35 |
Issue number | 2 |
DOIs | |
Publication status | Published - 1 May 2013 |
Keywords
- Carbon accounting
- Carbon sequestration
- Forest vintages
- Land allocation between alternative uses
- Land allocation model
- Optimal rotation
- Transition/steady-state