Journal of Forest Economics > Vol 11 > Issue 2

How attractive are forest carbon sinks? Economic insights into supply and demand of Certified Emission Reductions

Roland Olschewski, , rolsche@uni-forst.gwdg.de Pablo C. Benítez, , G.H.J. de Koning, , Tomás Schlichter, ,
 
Suggested Citation
Roland Olschewski, Pablo C. Benítez, G.H.J. de Koning and Tomás Schlichter (2005), "How attractive are forest carbon sinks? Economic insights into supply and demand of Certified Emission Reductions", Journal of Forest Economics: Vol. 11: No. 2, pp 77-94. http://dx.doi.org/10.1016/j.jfe.2005.04.001

Published: 07 Sep 2005
© 0 2005 Roland Olschewski, Pablo C. Benítez, G.H.J. de Koning, Tomás Schlichter
 
Subjects
 
Keywords
JEL Codes:D610Q230Q250
AR projectsCER accountingClean Development MechanismClimate changeDesertification
 

Article Help

Share

Download article
In this article:
Introduction
Methods
Results and discussion
Conclusions

Abstract

The Clean Development Mechanism includes afforestation projects as possible instruments to reduce global atmospheric CO2. These projects have also the potential to combat regional environmental problems like land degradation and desertification. The present article analyzes forestry projects in north-western Patagonia from an economic viewpoint based on the latest Kyoto Protocol developments. We consider temporary and long-term Certified Emission Reductions (CER) and determine the conditions on which forest plantations are attractive to potential CER suppliers and demanders. We conclude that for most of the recent carbon price projections, carbon sink projects would be economically viable for CER suppliers and at the same time attractive to CER demanders looking for cost-efficient emission abatement opportunities.

DOI:10.1016/j.jfe.2005.04.001