Journal of Forest Economics > Vol 20 > Issue 1

The economic costs of avoided deforestation in the developing world: A meta-analysis

Thu-Ha Dang Phan, Institute for Biodiversity and Ecosystem Dynamics, The Netherlands, d.t.h.phan@uva.nl , Roy Brouwer, Department of Environmental Economics, Institute for Environmental Studies, The Netherlands, Marc Davidson, Institute for Biodiversity and Ecosystem Dynamics, The Netherlands
 
Suggested Citation
Thu-Ha Dang Phan, Roy Brouwer and Marc Davidson (2014), "The economic costs of avoided deforestation in the developing world: A meta-analysis", Journal of Forest Economics: Vol. 20: No. 1, pp 1-16. http://dx.doi.org/10.1016/j.jfe.2013.06.004

Publication Date: 0/1/2014
© 0 2014 Thu-Ha Dang Phan, Roy Brouwer, Marc Davidson
 
Subjects
 
Keywords
JEL Codes:Q23
Avoided deforestationOpportunity costsREDCarbon storageClimate change mitigationMeta-analysis
 

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In this article:
Introduction 
Methodology 
Data description 
Estimated meta-regression model 
Conclusions 

Abstract

This meta-analysis aims to identify the key factors governing the economic costs of avoided deforestation in developing countries. To this end, data were collected from 32 primary studies published between 1995 and 2012, yielding 277 observations. Results show that unit costs depend significantly on cost features like estimation methodology, inclusion or exclusion of cost components, carbon accounting method, area size, alternative land uses and beneficiaries, time horizon, and the continent in which the forest protection scheme is implemented, but also factors like the share of agriculture in a nation's economy play a significant role in explaining unit costs. In future studies, greater attention needs to be paid to additional cost components like transaction costs and the presence of the co-benefits of avoided deforestation.

DOI:10.1016/j.jfe.2013.06.004