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, , 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.

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


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In this article:
Literature review of forest carbon leakage 


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.