Economics of Climate Change: The Contribution of Forestry Projects

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Springer Science & Business Media, Dec 6, 2012 - Technology & Engineering - 158 pages
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Climate change is one of the major global environmental problems, one that has the potential to confront us with great costs during the decades to come. Climate change is caused by emissions of greenhouse gases (GHGs) such as carbon dioxide (CO). As z deforestation leads to CO emissions and growing forests sequester CO, forestry z z projects provide us with options to mitigate CO effects. This study analyses the z contribution Jorestry projects can make within the context of climate change. The contribution of forestry projects is here discussed on two levels. On a first level, the COz effect of individual projects is analysed. On a second level, the study asks whether the analysis of forestry projects can contribute to questions on climate change which have been discussed in the economic literature during the past two decades. While most studies on forestry projects focus on particular details, predominantly on technical issues, this study takes a rather broad perspective, drawing together different relevant aspects: the stability of international agreements is discussed, costs and benefIts of reducing GHG emissions in industrial countries are reviewed, the underlying causes of deforestation are analysed and insights from resource economics are taken into consideration. Such a wide perspectiveallows the identifIcation, discussion and appreciation of problems and opportunities associated with forestry projects in the context of climate change which are otherwise not recognised.
 

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Contents

LIST OF FIGURES
2
LIST OF TABLES
10
THREE MAJOR ECONOMIC ISSUES
15
1 The Three Major Economic Issues of Climate Change
16
2 The Payoff Matrix
23
4 Costs from Doubling of CO2 Concentration in Billion at 1988 Prices30
30
3 Projects
41
EXTENT CAUSES AND CONSEQUENCES
46
Multiple Products Case 3
77
THE CO2 EFFECT OF PRECIOUS WOODS
86
1 Reforestation Areas of Precious Woods in Costa Rica
90
2 Total Carbon Storage of Precious Woods Plantations
96
LESSONS FROM PRECIOUS WOODS
112
1 Job Creation Capacity of Alternative Land Use Options
117
1 Jobs per ha for different Land Use Options
118
CONCLUSION
129

1 Forest Cover Area
47
2 Net Present Value of Tropical Forests in ha
63
6 Net Present Value of Tropical Forests in ha
64
FOREST USE AND THE DETERMINANTS OF SUSTAINABILITY
66
Table A 3 1 Parameters used Overview
149
Figure A 3 1 Carbon Store per ha intertemporal Development
152
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