Dual discounting in climate change mitigation in the forest sector

Hanne K. Sjølie, Greg S. Latta and Birger Solberg

Journal of Forest Economics, 2013, vol. 19, issue 4, 416-431

Abstract: The efficiency of potential climate change mitigation is predicated on future costs and benefits and thus heavily influenced by the discount scheme. Dual discounting involves discounting carbon and monetary values differently; stand level modeling efforts show that it improves the profitability of afforestation projects. However, these stand level results may not hold across other age classes and stocking levels. Using a partial, spatial equilibrium model of the Norwegian forest sector, we analyze the impacts of a dual discounting scheme on climate change mitigation efforts. Dual discounting results in less mitigation efforts in the first decades but substantially higher long-term mitigation efforts.

Keywords: Climate policy; Carbon sequestration; Boreal forestry; Partial equilibrium; Forest sector modeling (search for similar items in EconPapers)
JEL-codes: Q34 Q54 Q57 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:foreco:v:19:y:2013:i:4:p:416-431

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DOI: 10.1016/j.jfe.2013.07.001

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