FEEM working papers "Note di lavoro"
Date: 05/2012

Afforestation and Timber Management Compliance Strategies in Climate Policy. A Computable General Equilibrium Analysis

Authors: Melania Michetti, Renato Nunes Rosa
Type: Journal
JEL n.: D58, Q23, Q24, Q52, Q54
JEL: Ecological Economics
Pages: Vol. 77, pp. 139–148
Keywords: Climate Change, General Equilibrium Modelling, Forestry, Afforestation


This paper analyzes the role of afforestation-reforestation and timber management activities, and their major and secondary economic effects in stabilizing climate during the first commitment period of the Kyoto Protocol. In particular, with a Computable General Equilibrium framework, the ICES model, it is inferred how forest carbon sequestration fits within the European domestic portfolio of a 2020-20 and 2020-30 climate stabilization policy. Afforestation and land use are accounted for by introducing their effects in the model. This is done by relying on carbon sequestration curves provided by Sohngen (2005), which describe the average annual cost of sequestration for selected world regions. Results show that afforestation and timber management could lead to substantially lower policy costs if included. By allowing afforestation alone it is possible to achieve the 30% emissions reduction target with an additional European effort of only 0.2% compared with the cost of a 20% emissions reduction without afforestation. The introduction of these alternatives for mitigating climate is expected to reduce carbon price by around 30% in 2020 and the already contained leakage effect (around 1%), coming from an independent European commitment, by 0.2%.


Suggested citation: Melania Michetti, Renato Rosa, Afforestation and timber management compliance strategies in climate policy. A computable general equilibrium analysis, Ecological Economics, Volume 77, May 2012, Pages 139-148, ISSN 0921-8009, http://dx.doi.org/10.1016/j.ecolecon.2012.02.020

Download file
Download PDF file

FEEM Newsletter & Update

Subscribe to stay connected.

Your personal data will be processed by Fondazione Eni Enrico Mattei. – data Controller – with the aim of emailing the FEEM newsletter & Update. The use of Your email address is necessary for the implementation of the newsletter service. You are invited to read the Privacy Policy in order to obtain additional information about the protection of Your rights.

This Website uses technical cookies and cookie analytics, as well as “third party” profiling cookies.
If you close this banner or you decide to continue navigating on this Website, you express consent to the use of cookies. If you need additional information or you wish to express selective choices on the use of cookies, please refer to the   Cookie PolicyI agree