Journal of Forest Economics > Vol 19 > Issue 4

Consequences of carbon offset payments for the global forest sector

Joseph Buongiorno, , Shushuai Zhu
Suggested Citation
Joseph Buongiorno and Shushuai Zhu (2013), "Consequences of carbon offset payments for the global forest sector", Journal of Forest Economics: Vol. 19: No. 4, pp 384-401.

Publication Date: 0/12/2013
© 0 2013 Joseph Buongiorno, Shushuai Zhu
JEL Codes:C54C61F18L73O13A23Q41
Carbon marketsInternational tradeGlobal Forest Products Model


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Summary and conclusion 


Long-term effects of policies to induce carbon storage in forests were projected with the Global Forest Products Model. Offset payments for carbon sequestered in forest biomass of $15–$50/t CO2e applied in all countries increased CO2 sequestration in world forests by 5–14 billion tons from 2009 to 2030. Limiting implementation to developed countries exported environmental damage from North to South, as developing countries harvested more, decreasing their stored CO2e. Substantially more CO2e was sequestered by allocating a given budget to all countries rather than to developed countries only. As offset payments increased wood prices relatively more than they decreased production, timber revenues generally increased. In the few countries with timber revenues losses they were more than compensated by the offset payments.