Potential variation in opportunity cost estimates for REDD+ and its causes
Hongqiang Yang () and
Forest Policy and Economics, 2018, vol. 95, issue C, 138-146
REDD+ programs and projects aim to mitigate climate change by reducing deforestation and forest degradation and enhancing forest carbon stocks. The viability of REDD+ programs depends in a large part on their opportunity costs (OCs); however, large variation exists in the estimated OC. This study aims to quantify the variation in OC reported in the literature and identify its causes. In addition to a careful description, a meta-analysis was conducted to examine the heterogeneities across the different estimating methods, data sources, deforestation drivers, and geographic regions found in previous studies. Our results show a large variation in the estimated OC because of differences in data sources, assumptions about future markets, and factors, such as carbon density, crop price and yield, and time horizon. Furthermore, variation exists even among studies of the same driver(s) of deforestation and forest degradation, within the same continent, and from the same data source. Time horizon is the largest contributor to cost variation, followed by carbon density and crop price. Geographically, the OCs are $19.49/tCO2e in Africa, $9.19/tCO2e in Asia Pacific, and $4.33/tCO2e in Latin America, respectively. Despite their large variation, the REDD+ OCs remain fairly low in most reasonable cases.
Keywords: REDD+; Opportunity cost; Time horizon; Carbon density; Crop (forest products) price (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:forpol:v:95:y:2018:i:c:p:138-146
Access Statistics for this article
Forest Policy and Economics is currently edited by M. Krott
More articles in Forest Policy and Economics from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().