Forestry and the Carbon Market Response to Stabilize Climate

19 Pages Posted: 20 Feb 2007

See all articles by Massimo Tavoni

Massimo Tavoni

Fondazione Eni Enrico Mattei (FEEM); Princeton University - Princeton Environmental Institute

Valentina Bosetti

Bocconi University; CMCC - Euro Mediterranean Centre for Climate Change

Brent Sohngen

Ohio State University (OSU) - Department of Agricultural, Environmental & Development Economics

Multiple version iconThere are 2 versions of this paper

Date Written: January 2007

Abstract

This paper investigates the potential contribution of forestry management in meeting a CO2 stabilization policy of 550 ppmv by 2100. In order to assess the optimal response of the carbon market to forest sequestration we couple two global models. An energy-economy-climate model for the study of climate policies is linked with a detailed forestry model through an iterative procedure to provide the optimal abatement strategy. Results show that forestry is a determinant abatement option and could lead to significantly lower policy costs if included. Linking forestry management to the carbon market has the potential to delay the policy burden, and is expected to reduce the price of carbon of 40% by 2050. Biological sequestration will mostly come from avoided deforestation in tropical forests rich countries. The inclusion of this mitigation option is demonstrated to crowd out some of the traditional abatement in the energy sector and to lessen induced technological change in clean technologies.

Keywords: Forestry, Climate Policy, Technological Innovation

JEL Classification: Q23, Q52, Q55

Suggested Citation

Tavoni, Massimo and Bosetti, Valentina and Sohngen, Brent L., Forestry and the Carbon Market Response to Stabilize Climate (January 2007). FEEM Working Paper No. 15.2007, Available at SSRN: https://ssrn.com/abstract=962387 or http://dx.doi.org/10.2139/ssrn.962387

Massimo Tavoni (Contact Author)

Fondazione Eni Enrico Mattei (FEEM) ( email )

Corso Magenta 63
20123 Milan
Italy

Princeton University - Princeton Environmental Institute

22 Chambers Street
Princeton, NJ 08544-0708
United States

Valentina Bosetti

Bocconi University

Via Gobbi 5
Milan, 20136
Italy

CMCC - Euro Mediterranean Centre for Climate Change

via Augusto Imperatore, 16
Lecce, I-73100
Italy

Brent L. Sohngen

Ohio State University (OSU) - Department of Agricultural, Environmental & Development Economics ( email )

2120 Fyffe Rd
Ag Admin
Columbus, OH 43210-1067
United States

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