Are Agricultural Values a Reliable Guide in Determining Landowners’ Decisions to Create Carbon Forest Sinks?

Sabina L. Shaikh, Lili Sun and Gerrit van Kooten

No 37017, Working Papers from University of Victoria, Resource Economics and Policy

Abstract: This research examines the effects of various factors on farmer participation in agricultural tree plantations for economic, environmental, social and carbon-uptake purposes, and potential costs of sequestering carbon through afforestation in western Canada. Using data from a survey of landowners, a discrete choice random utility model is used to determine the probability of landowners’ participation and corresponding mean willingness to accept (WTA) compensation for a tree-planting program. WTA includes positive and negative benefits to landowners from planting trees, benefits not captured by foregone returns from agricultural activities on marginal land. Estimates of WTA are less than foregone returns, but even so average costs of creating carbon credits still exceed their projected value under a CO2-emissions trading scheme.

Keywords: Environmental Economics and Policy; Land Economics/Use; Resource/Energy Economics and Policy (search for similar items in EconPapers)
Pages: 33
Date: 2005-07
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Working Paper: Are Agricultural Values a Reliable Guide in Determining Landowners’ Decisions to Create Carbon Forest Sinks? (2005)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:uvicwp:37017

DOI: 10.22004/ag.econ.37017

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