Journal of Forest Economics > Vol 33 > Issue 1

Negative leakage: The key role of forest management regimes

Jorge H. García, Universidad de los Andes School of Management (UASM), Colombia, jh.garcia27@uniandes.edu.co Anton Orlov, Center for International Climate and Research (CICERO), Norway, Asbjørn Aaheim, Center for International Climate and Research (CICERO), Norway,
 
Suggested Citation
Jorge H. García, Anton Orlov and Asbjørn Aaheim (2018), "Negative leakage: The key role of forest management regimes", Journal of Forest Economics: Vol. 33: No. 1, pp 8-13. http://dx.doi.org/10.1016/j.jfe.2018.09.001

Published: 0/12/2018
© 0 2018 Jorge H. García, Anton Orlov, Asbjørn Aaheim
 
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Keywords
Forest carbonInstitutionsManagement regimesNegative leakageREDD-Plus
 

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In this article:
Introduction
Literature review of forest carbon leakage
Model
Conclusions

Abstract

A model of two regions with a common wood market is introduced. Regions may be of two types, according to their forest management regime, namely managed forest plantations (M) and unmanaged open access forests (U). It is found that when regions are of the same type, unilateral climate policy in the forestry sector leads to (positive) carbon leakage. However, when regions are of different types, unilateral climate policy results in negative carbon leakage. Thus, policies aimed at increasing diversity in management regimes, within a wood market, stimulate the emergence of market forces that preserve and enhance forest carbon.

DOI:10.1016/j.jfe.2018.09.001