Forecasting the effect of carbon price and log price on the afforestation rate in New Zealand

Bruce Manley

Journal of Forest Economics, 2018, vol. 33, issue C, 112-120

Abstract: The Emissions Trading Scheme (ETS) enacted in New Zealand in 2008 allows forest growers to claim units for carbon sequestered by new forests. As afforestation is an important contributor to New Zealand meeting net emission targets there is interest in forecasting the rate of afforestation, particularly how it will vary with the price of carbon in the ETS. Consequently a model is developed to estimate afforestation rate from the Land Expectation Value (LEV) of ‘traditional’ forestry (i.e., revenues only from log sales), the LEV from the carbon trading opportunity that the ETS creates, and land value.

Keywords: Afforestation; Emissions Trading Scheme; Land Expectation Value (search for similar items in EconPapers)
JEL-codes: Q23 Q57 (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (2)

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DOI: 10.1016/j.jfe.2017.11.002

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