Climate and forests: The tradeoff between forests as a source for producing bioenergy and as a carbon sink

Michael Hoel and Thea Marcelia Sletten

Resource and Energy Economics, 2016, vol. 43, issue C, 112-129

Abstract: Forest harvests are a possible source of second-generation wood-based bioenergy. The carbon stored in the forest is highest when there is little or no harvest from the forest. Increasing the harvest from a forest, in order to produce more bioenergy, may thus conflict with the direct benefit of the forest as a carbon sink. We analyze this conflict using a simple model where bioenergy and fossil energy are perfect substitutes. Our analysis shows how the social optimum will depend on the size of the climate cost, and how the social optimum may be obtained by suitable taxes and subsidies.

Keywords: Climate; Carbon; Bioenergy; Forests (search for similar items in EconPapers)
JEL-codes: Q30 Q42 Q54 Q58 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:resene:v:43:y:2016:i:c:p:112-129

DOI: 10.1016/j.reseneeco.2015.11.005

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