Economics of Climate Change: The Contribution of Forestry Projects

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Springer Science & Business Media, 2000 - 158 pages
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Climate change is one of the major global environmental problems, one that has the potential to confront us with great costs during the decades to come. Climate change is caused by emissions of greenhouse gases (GHGs) such as carbon dioxide (CO). As z deforestation leads to CO emissions and growing forests sequester CO, forestry z z projects provide us with options to mitigate CO effects. This study analyses the z contribution Jorestry projects can make within the context of climate change. The contribution of forestry projects is here discussed on two levels. On a first level, the COz effect of individual projects is analysed. On a second level, the study asks whether the analysis of forestry projects can contribute to questions on climate change which have been discussed in the economic literature during the past two decades. While most studies on forestry projects focus on particular details, predominantly on technical issues, this study takes a rather broad perspective, drawing together different relevant aspects: the stability of international agreements is discussed, costs and benefIts of reducing GHG emissions in industrial countries are reviewed, the underlying causes of deforestation are analysed and insights from resource economics are taken into consideration. Such a wide perspectiveallows the identifIcation, discussion and appreciation of problems and opportunities associated with forestry projects in the context of climate change which are otherwise not recognised.

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Contents

Climate Change International Negotiations and Precious Woods
1
13 International Negotiations on Climate Change
8
14 Precious Woods
10
15 Summary and Conclusion
13
Climate Change Three Major Economic Issues
15
22 Climate Change as a Cooperation Problem
16
23 Benefits and Costs of CO₂ Abatement
28
24 Instruments
36
45 Summary and Conclusion
85
The CO₂ Effect of Precious Woods
86
53 CO₂ Effect of Precious Woods Costa Rica
90
54 The CO₂ Effect of Precious Woods Brazil
102
55 Selling Carbon Sequestration via JICDM
110
56 Summary and Conclusion
111
Lessons from Precious Woods
112
63 Reducing Deforestation in Brazil
115

25 Summary and Conclusion
45
Deforestation Extent Causes and Consequences
46
33 Causes of Deforestation
49
34 Consequences of Deforestation
55
35 Summary and Conclusion
65
Forest Use and the Determinants of Sustainability
66
42 Sustainability
67
43 Optimal Management if Firms Maximise Profit per Unit of Land
72
Moving Settlers
78
64 Summary and Conclusion
127
Conclusion
129
Bibliography
134
Appendix 1
144
Appendix 2
146
Appendix 3
148
Appendix 4
154
Index
156
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