Consequences of carbon offset payments for the global forest sector

Joseph Buongiorno and Shushuai Zhu

Journal of Forest Economics, 2013, vol. 19, issue 4, 384-401

Abstract: 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.

Keywords: Carbon markets; International trade; Global Forest Products Model (search for similar items in EconPapers)
JEL-codes: A23 C54 C61 F18 L73 O13 Q41 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (2)

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DOI: 10.1016/j.jfe.2013.06.005

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