EconPapers    
Economics at your fingertips  
 

The land use change time-accounting failure

Marion Dupoux

Working Papers from HAL

Abstract: Land use change (LUC) is the second largest human-induced source of greenhouse gases. While LUC impacts are mostly immediate, policy makers consider it to be evenly spread over time. In the context of public evaluation of projects, I theoretically show that, as long as the discounting process perfectly offsets the rise of carbon prices, cost-benefit analysis outcomes are not affected. When this condition does not hold, which is particular to the global warming issue, the uniform time-accounting of LUC distorts present values by emphasizing both the discounting process and the increase in the carbon price over time. This induced bias is quantified in a case study of bioethanol in France. Depending on the type of impact and discounting and carbon pricing assumptions, a downward/upward bias between ±15% and ±30% of the LUC value is found. Two simple decision tools are pro- vided to improve accounting of LUC impacts.

Date: 2016-07
Note: View the original document on HAL open archive server: https://ifp.hal.science/hal-02489625
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://ifp.hal.science/hal-02489625/document (application/pdf)

Related works:
Journal Article: The land use change time-accounting failure (2019) Downloads
Working Paper: The land use change time-accounting failure (2019) 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:hal:wpaper:hal-02489625

Access Statistics for this paper

More papers in Working Papers from HAL
Bibliographic data for series maintained by CCSD ().

 
Page updated 2025-03-19
Handle: RePEc:hal:wpaper:hal-02489625