EconPapers    
Economics at your fingertips  
 

Improving land-use modelling within CGE to assess forest-based mitigation potential and costs

Melania Michetti and Ramiro Parrado ()

No 124380, 2012 First Congress, June 4-5, 2012, Trento, Italy from Italian Association of Agricultural and Applied Economics (AIEAA)

Abstract: We present a computable general equilibrium model properly modified to analyse the potential role of the European forestry sector within climate mitigation. Improvements on database and modelling frameworks allow accounting for land heterogeneity across and within regions and for land transfers between agriculture, grazing, and forestry. The forestry sector has been modified to track carbon mitigation potential from both intensive and extensive forest margins, which have been calibrated according to a forest sectoral model. Two sets of climate policies are simulated. In a first scenario, Europe is assumed to commit unilaterally to reduce CO2 emissions of 20% and 30%, by 2020. In a second scenario, in addition to the emissions quotas, progressively higher forest-sequestration subsidies are paid to European firms to foster the implementation of forestry practices. Results show that including forest carbon in the compliance strategy decreases European policy costs and carbon price, although public spending is redirected towards the financing of the forest sequestration subsidy. Comparing public spending and savings in policy costs a net positive balance is reported for all the European regions. Significant reductions in carbon leakage or pressure on food security and deforestation outside Europe are not acknowledged.

Keywords: Land; Economics/Use (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-env
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5) Track citations by RSS feed

Downloads: (external link)
http://ageconsearch.umn.edu/record/124380/files/AIEAA%20Michetti_Parrado.pdf (application/pdf)

Related works:
Working Paper: Improving land-use modelling within CGE to assess forest-based mitigation potential and costs (2012) Downloads
Working Paper: Improving Land-use Modelling within CGE to Assess Forest-based Mitigation Potential and Costs (2012) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:aieacp:124380

Access Statistics for this paper

More papers in 2012 First Congress, June 4-5, 2012, Trento, Italy from Italian Association of Agricultural and Applied Economics (AIEAA) Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().

 
Page updated 2019-06-02
Handle: RePEc:ags:aieacp:124380