The Effect of Temporary Certified Emission Reductions on Forest Rotations and Carbon Supply

摘要

This paper examines the effect of the Clean Development Mechanism regulations that create temporary certified emission reductions on harvesting decisions, land use allocation, and the carbon supply in forest plantations. We develop a model that solves the landowner's harvesting decision when revenues from carbon uptake are included. Rotation intervals and carbon credit supply slightly increase. Fast growing tree species with shorter rotation intervals have relatively more inelastic carbon credit supply curves than slow growing tree species with longer rotations. With moderate carbon prices, most carbon sequestration gains originate from the extensive margin through the expansion of forest land, but approximately 22–35% of total carbon sequestered comes from the intensive margin through an increase in rotation intervals. The contribution to carbon sequestration from the intensive margin is more significant as the carbon price increases.