Cap and trade policy for managing water competition from potential future carbon plantations

Carbon sequestration from reforestation can play a large role in mitigating global climate change. However, resulting interception of rainfall runoff may impose high irrigation, water supply and/or environmental flow costs. This article presents an assessment of water trade policy to manage fresh water supply, carbon sequestration trade-offs for the Murray-Darling Basin. A linked Australian high spatial resolution land use and global integrated assessment framework evaluated plausible and internally-consistent global scenarios to 2050 involving significant carbon planting incentive. Substantial flow loss from increased interception was estimated absent policy to balance carbon water trade-offs. Absent policy to address the trade-off, irrigation opportunity costs was estimated to substantially exceed carbon sequestration economic value in futures with significant carbon sequestration incentive. The value of integrating interception from new carbon plantings into the existing water trade system was estimated at $3.3 billion and $2.0 billion (2050 annual value) for our strong and moderately strong global climate action outlooks with our reference case assumptions. The conclusion that trade provision in policy to cap interception impacts can produce significant benefits in scenarios with significant carbon sequestration incentive remained robust over a very broad set of sensitivities tested with benefit estimated at over $1 billion annually at 2050 even for very conservative assumptions.     

An assessment of uncertainty in forest carbon budget projections

Estimates of uncertainty are presented for projections of forest carbon inventory and average annual net carbon flux on private timberland in the US using the model FORCARB. Uncertainty in carbon inventory was approximately ±9% (2000 million metric tons) of the estimated median in the year 2000, rising to 11% (2800 million metric tons) in projection year 2040, with this range covering 95% of the distribution. Relative uncertainties about net flux were higher and more variable than relative uncertainty estimates of carbon inventory. Results indicated that relatively high correlations among projected carbon budgets for the regional forest types led to greater total uncertainty than under assumptions of independence among types, indicating that an accurate portrayal of correlations is important. Uncertainty in soil carbon, closely followed by uncertainty in tree carbon, were most influential in estimating uncertainty in carbon inventory, but uncertainties in projections of volume growth and volume removals were most important in estimating uncertainty in carbon flux. This implies the most effective ways of reducing uncertainty in carbon flux are different from those required to reduce uncertainties in carbon inventory. Analyses as presented here are necessary prerequisites to identify and reduce uncertainty in a systematic and iterative way.     

Transaction costs for carbon sequestration projects in the tropical forest sector

There is general consensus that carbon (C) sequestration projects in forests are a relatively low cost option for mitigating climate change, but most studies on the subject have assumed that transaction costs are negligible. The objectives of the study were to examine transaction costs for forest C sequestration projects and to determine the significance of the costs based on economic analyses. Here we examine four case studies of active C sequestration projects being implemented in tropical countries and developed for the C market. The results from the case studies were then used with a dynamic forest and land use economic model to investigate how transaction costs affect the efficiency and cost of forest C projects globally. In the case studies transaction costs ranged from 0.38 to 27 million US dollars ($0.09 to $7.71/t CO₂) or 0.3 to 270 % of anticipated income depending principally on the price of C and project size. The three largest cost categories were insurance (under the voluntary market; 41–89 % of total costs), monitoring (3–42 %) and regulatory approval (8–50 %). The global analysis indicated that most existing estimates of marginal costs of C sequestration are underestimated by up to 30 % because transaction costs were not included.     

The Social Costs of Climate Change: The IPCC Second Assessment Report and Beyond

Climate change is expected to have far-reaching impacts. Earlier studies have estimated an aggregated monetised damage equivalent to 1.5 to 2.0 % of World GDP (for 2 × CO₂). According to these estimates, the OECD would face losses equivalent to 1.0 to 1.5 % of GDP, and developing countries 2.0 to 9.0 %. While these figures are preliminary and highly uncertain, recent findings have not, as yet, changed the general picture. As is shown in this paper, estimates that are fully corrected for differences in purchasing power parity do not significantly differ from the initial figures. Newer studies increasingly emphasise adaptation, variability, extreme events, other (non-climate change) stress factors, and the need for integrated assessment of damages. Incorporating these factors has lead to increased differences in estimated impacts between different regions and sectors. Estimates of market impacts in developed countries tended to fall, while non-market impacts have become more important. Marginal damages are more interesting from a policy point of view. Earlier estimates range from about $5 to $125 per tonne of carbon, with most estimates at the lower end of this range. These figures are based on power functions in the level of climate change. The rate of change may be equally important, as are the speed of adaptation, restoration and value adjustment. Furthermore, future vulnerability to climate change will differ from current vulnerability: market impacts could fall (relatively) with economic growth while non-market impacts may rise. This revised version was published online in August 2006 with corrections to the Cover Date.     

Forests in climate policy: technical,institutional and economic issues in measurement and monitoring

Despite the economic and environmental significance of the world’s forests, we have limited data about them. Estimates of deforestation in tropical countries and rates of reforestation or afforestation in boreal and temperate countries are inconsistent. Accordingly, estimates of emissions released in deforestation vary widely and range from 7% to 17% of all sources of greenhouse gas (GHG) emissions. The lack of good data severely hampers efforts to shape climate policy because it is difficult to model the role of forests both in the physical global carbon (C) cycle and in cost-effective regimes to abate GHG. Data limits strain the capacity of even the best models to estimate marginal cost functions for forest carbon (C) sequestration. It is technically possible to obtain better information, but for institutional and economic reasons these technologies have not yet been fully deployed. The emergence of carbon (C) trading or tax policy in which forest carbon (C) storage becomes valued would strengthen incentives to supply better data, as would nonmarket regulation if it elicited a shadow value of forest carbon (C) in substituting for reductions in greenhouse gas emissions. “Geo-wiki” may provide a short-term solution to at least part of the data problem. The ultimate solution is the development of a comprehensive forest monitoring system involving remote sensing and on-the-ground truthing. This paper briefly discusses the role of forests in climate policy and then describes data gaps, the capability of technology to fill them, the limits of institutions and budgets in realizing this capability, and possible near-term solutions.     

林业碳汇项目基准线和监测方法学及应用分析——以贵州省贞丰县林业碳汇项目为例

气候变化给全球社会经济发展带来了重大影响,林业碳汇在适应和减缓气候变化、促进可持续发展三方面的重要作用日益被世界各国所认可。林业碳汇项目实施的难点在于准确掌握林业碳汇项目设计的规则、标准体系,重点在于基准线判别、碳汇计量、监测的方法学和工具。本文系统介绍了国际清洁发展机制造林再造林(CDM A/R)项目方法学和国内碳汇造林项目方法学、标准体系等最新成果,并以贵州省贞丰县林业碳汇项目为例,分析了基准线和监测方法学在林业碳汇项目开发设计中的实际应用。     

Global Supply of Biomass for Energy and Carbon Sequestration from Afforestation/Reforestation Activities

In this paper we provide an analytical framework to estimate the joint production of biomass and carbon sequestration from afforestation and reforestation activities. The analysis is based on geographical explicit information on a half-degree resolution. For each grid-cell the model estimates forest growth using a global vegetation model and chooses forest management rules. Land prices, cost of forest production and harvesting are determined as a function of grid specific site productivity, population density and estimates of economic wealth. The sensitivity of the results due to scenario storylines is assessed using different population and economic growth assumptions, which are consistent with B1 and A2 of the Intergovernmental Panel on Climate Change Special Report on Emission Scenarios (IPCC-SRES) marker scenarios. Considerable differences in the economic supply schedules are found. However, technical potentials seem to converge given constancy in other underlying assumptions of the model.     

Estimating carbon supply curves from afforestation of agricultural land in the Northeastern U.S.

The Regional Greenhouse Gas Initiative for the northeastern states of the U.S. allows for terrestrial carbon (C) sequestration offsets generated by afforestation activities only. This paper estimates the maximum potential quantity and associated costs of increasing the storage of carbon by afforestation of existing agricultural land in the 11 states of the Northeast United States. The focus of the work was to describe location, the quantity, and at what cost it would be economically attractive to shift agricultural production to afforestation to increase carbon storage in the region. Widely available data sets were used to (1) identify spatially-explicit areas for lower costs carbon offsets and (2) estimate carbon supply curves related to afforestation of agricultural land over three time periods (10, 20, and 40 years). Carbon accumulation and total carbon offset project costs were estimated at a county scale and combined to identify expected costs per ton of carbon dioxide equivalents (CO₂e). Large variation in estimated costs per ton of CO₂e are driven by varying carbon accumulation potentials and opportunity costs of taking land out of agricultural production, as well as the duration of the project activity. Results show that the lowest cost carbon offset projects will be in certain counties of Maine, Vermont, and New York. Pasture land, with lower opportunity costs, generally presents the opportunity for lower cost carbon offset projects relative to cropland. This analysis estimates that afforestation of pasture land in the northeast will not become economically attractive until the price rises above 10 per metric tonne (MT) CO < sub > 2 < /sub > e and that up to 583 million MT could be economically sequestered if the price were to rise to10 per metric tonne (MT) CO₂e and that up to 583 million MT could be economically sequestered if the price were to rise to 50 per MT CO₂e, based on a 40-year project life. With regard to cropland in the northeast, afforestation does not become economically advantageous for land owners until the price rises above $40 per MT CO₂e. It is estimated that up to 487,000 MT could be sequestered from cropland if the price were to rise to $40 per MT CO₂e. It is estimated that up to 487,000 MT could be sequestered from cropland if the price were to rise to 50 per MT CO₂e, based on a 40-year project life.     

Dynamics and the economics of carbon sequestration: common oversights and their implications

Accurate assessment of the cost of carbon sequestration is important for the development of mitigation policies globally. Given that sequestration in soils or vegetation is a lengthy process, such assessment requires financial discounting and making realistic assumptions about changes over time in the rate of sequestration, the price of carbon, and the opportunity cost incurred by adopting sequestration practices. Our objective is to demonstrate how these assumptions affect estimates of the cost of sequestration-based mitigation strategies. Using an Australian case study of soil carbon sequestration, our estimates of the carbon price required for financial viability are highly sensitive to dynamic assumptions, varying by a factor of four with different assumptions. Yet the influence of these time-related assumptions is poorly acknowledged in the literature, with many studies either failing to disclose their assumptions, or employing questionable assumptions and methods. Recommended global strategies are for researchers to report their assumptions related to dynamics much more transparently and to improve their research methods and the realism of their assumptions when analysing the economics of carbon sequestration. We recommend that policymakers become better aware of the issues created by dynamics, so that they are able to validly interpret assessments of the cost of sequestration and to ensure that they design policies in a way that facilitates fair comparison of the costs of mitigation strategies that operate over different timescales.     

The role of economic,policy, and ecological factors in estimating the value of carbon stocks in Everglades mangrove forests,South Florida,USA

Old growth mangroves in existing protected areas store more carbon than restored forests or plantations. Carbon storage in such forests has economic value independent of additionality, offering opportunities for policy makers to ensure their maintenance, and inclusion in climate change mitigation strategies. Mangrove forests of the Everglades National Park (ENP), South Florida, though protected, face external stressors such as hydrological alterations because of flooding control structures and agriculture impacts and saltwater intrusion as a result of increasing sea level rise. Moreover, decreased funding of Everglades’ restoration activities following the recent economic crisis (beginning 2008) threatens the restoration of the Greater Everglades including mangrove dominated coastal regions. We evaluate several economic and ecological challenges confronting the economic valuation of total (vegetation plus soil) organic carbon (TOC) storage in the ENP mangroves. Estimated TOC storage for this forested wetland ranges from 70 to 537 Mg C/ha and is higher than values reported for tropical, boreal, and temperate forests. We calculate the average abatement cost of C specific for ENP mangroves to value the TOC from $2–$3.4 billion; estimated unit area values are $13,859/ha–$23,728/ha. The valuation of the stored/legacy carbon is based on the: 1) ecogeomorphic attributes, 2) regional socio-economic milieu, and 3) status of the ENP mangroves as a protected area. The assessment of C storage estimates and its economic value can change public perception about how this regulating ecosystem service of ENP mangrove wetlands (144,447 ha) supports human well-being and numerous economic activities. This perception, in turn, can contribute to future policy changes such that the ENP mangroves, the largest mangrove area in the continental USA, can be included as a potential alternative in climate change mitigation strategies.     

Carbon forestry economic mitigation potential in India,by land classification

Carbon forestry mitigation potential estimates at the global-level are limited by the absence or simplicity of national-level estimates, and similarly national-level estimates are limited by absence of regional-level estimates. The present study aims to estimate the mitigation potential for a large diverse country such as India, based on the GTAP global land classification system of agro-ecological zones (AEZs), as well the Indian AEZ system. The study also estimates the implications of carbon price incentive (US$50 and $100) on mitigation potential in the short-, medium- and long-term, since afforestation and reforestation (A & R) is constrained by lack of investment and financial incentives. The mitigation potential for short and long rotation plantations and natural regeneration was estimated using the GCOMAP global forest model for two land area scenarios. One scenario included only wastelands (29 Mha), and the second enhanced area scenario, included wastelands plus long fallow and marginal croplands (54 Mha). Under the $100 carbon price case, significant additional area (3.6 Mha under the wasteland scenario and 6.4 Mha under the enhanced area scenario) and carbon mitigation is gained in the short-term (2025) compared to the baseline when using the GTAP land classification system. The area brought under A & R increases by 85–100% for the $100 carbon price compared to $50 carbon price in the short-term, indicating the effectiveness of higher carbon price incentives, especially in the short-term. A comparison of estimates of mitigation potential using GTAP and Indian AEZ land classification systems showed that in the short-term, 35% additional C-stock gain is achieved in the $100 carbon price case in the enhanced area scenario of the Indian AEZ system. This difference highlights the role of the land classification system adopted in estimation of aggregate mitigation potential estimates, particularly in the short-term. Uncertainty involved in the estimates of national-level mitigation potential needs to be reduced, by generating reliable estimates of carbon stock gain and losses, and cost and benefit data, for land use sector mitigation options at a scale disaggregated enough to be relevant for national mitigation planning.     

Potential world garbage and waste carbon sequestration

To offset the carbon dioxide released by fossil fuels, a proposed sequestration strategy relies on burying garbage and waste in landfills. This paper roughly estimates the current annual world supply of carbonaceous waste to be 35.5 billion metric tons and to contain about 18 billion metric tons of carbon. If landfills received all of this waste, sequestration of more than 5.6 billion metric tons of carbon seems theoretically possible—an amount well in excess of the 3.3 billion metric tons which the atmosphere is currently gaining.     

Climate change impacts on freshwater recreational fishing in the United States

We estimated the biological and economic impacts of climate change on freshwater fisheries in the United States (U.S.). Changes in stream temperatures, flows, and the spatial extent of suitable thermal habitats for fish guilds were modeled for the coterminous U.S. using a range of projected changes in temperature and precipitation caused by increased greenhouse gases (GHGs). Based on modeled shifts in available thermal habitat for fish guilds, we estimated potential economic impacts associated with changes in freshwater recreational fishing using a national-scale economic model of recreational fishing behavior. In general, the spatial distribution of coldwater fisheries is projected to contract, being replaced by warm/cool water and high-thermally tolerant, lower recreational priority (i.e., “rough”) fisheries. Changes in thermal habitat suitability become more pronounced under higher emissions scenarios and at later time periods. Under the highest GHG emissions scenario, by year 2100 habitat for coldwater fisheries is projected to decline by roughly 50 % and be largely confined to mountainous areas in the western U.S. and very limited areas of New England and the Appalachians. The economic model projects a decline in coldwater fishing days ranging from 1.25 million in 2030 to 6.42 million by 2100 and that the total present value of national economic losses to freshwater recreational fishing from 2009 to 2100 could range from $81 million to $6.4 billion, depending on the emissions scenario and the choice of discount rate.     

Potential economic impact of introduction and spread of the red imported fire ant, Solenopsis invicta, in Hawaii

Globally, many invasive alien species have caused extensive ecological and economic damage from either accidental or intentional introduction. The red imported fire ant, Solenopsis invicta, has created billions of dollars in costs annually, spreading as an invasive species across the southern United States. In 1998, the red imported fire ant spread into California creating a highly probable future introduction via shipped products to Hawaii. This paper presents the estimation of potential economic impacts of the red imported fire ant (RIFA) to the state of Hawaii. Evaluation of impacts focuses on the economic sectors of (1) households, (2) agriculture (cattle and crop production), (3) infrastructure (cemeteries, churches, cities, electrical, telephone, and cable services, highways, hospitals and schools), (4) recreation, tourism and business (hotels/resort areas, golf courses, commercial businesses and tourists), and (5) government expenditures (with minimal intervention). The full annual economic costs of the red imported fire ant to Hawaii are estimated (in US$ 2006) to be $211 million/year, comprised of $77 million in damages and expenditures and $134 million in foregone outdoor opportunities to households and tourists. The present value of the projected costs of RIFA over a 20-year period after introduction total $2.5 billion. RIFA invasions across the globe indicate that economic cost-effective action in Hawaii entails implementation of prevention, early detection and rapid response treatment programs for RIFA.     

Agricultural bio-char production,renewable energy generation and farm carbon sequestration in Western Australia: Certainty,uncertainty and risk

Reducing the vulnerability of agriculture to climate change while increasing primary productivity requires mitigation and adaptation activities to generate profitable co-benefits to farms. The conversion of woody-wastes by pyrolysis to produce bio-char (biologically derived charcoal) is one potential option that can enhance natural rates of carbon sequestration in soils, reduce farm waste, and substitute renewable energy sources for fossil-derived fuel inputs. Bio-char has the potential to increase conventional agricultural productivity and enhance the ability of farmers to participate in carbon markets beyond traditional approach by directly applying carbon into soil. This paper provides an overview of the pyrolysis process and products and quantifies the amount of renewable energy generation and net carbon sequestration possible when using farm bio-waste to produce bio-char as a primary product. While this research provides approximate bio-char and energy production yields, costs, uses and risks, there is a need for additional research on the value of bio-char in conventional crop yields and adaptation and mitigation options.     

Forestry Mitigation Options for Mexico: Finding Synergies between National Sustainable Development Priorities and Global Concerns

We examine carbon (C) reference and mitigation scenarios for the Mexicanforest sector between the year 2000 and 2030. Estimates are presentedseparately for the period 2008–2012.Future C emissions and capture are estimated using a simulation modelthat: a) allocates the country land use/land cover classes among differentfuture uses and categories using demand-based scenarios for forestryproducts; b) estimates the total C densities associated to each land usecategory, and c) determines the net carbon implications of the process ofland use/cover change according to the different scenarios.The options analyzed include both afforestation/reforestation, such ascommercial, bionenergy and restoration plantations, and agroforestrysystems, and forest conservation, through the sustainable management ofnative forests and forest protection.The total mitigation potential, estimated as the difference between the totallong-term carbon stock in the reference and the mitigation scenario reaches300 × 10⁶ Mg C in the year 2012 and increases to 1,382 × 10⁶ Mg C in 2030. The average net sequestration in the 30 year period is 46 × 10⁶ Mg C yr^-1, or 12.5 × 10⁶ Mg C yr^-1 within the period 2008 to 2012. The costs of selected mitigation options range from 0.7–3.5 Mg C^-1 to 35 Mg C^-1. Some options are cost effective.     

基于森林碳汇经济价值中国宏观社会核算矩阵扩展

随着气候变化及温室效应等问题的广泛影响,森林的碳汇功能越来越受到人们的关注。社会核算矩阵作为可计算一般均衡模型的标准数据基础,为详细描述经济系统中各部门、各经济主体以及各市场之间的联系提供了一个理想的数据支持。本文在编制我国宏观2007年社会核算矩阵的基础上,将森林碳汇的经济价值纳入到其中,对我国宏观社会核算矩阵进行扩展,扩展后的社会核算矩阵可用于森林碳汇的经济效益分析以及为建立森林碳汇的CGE模型提供数据基础。     

森林碳汇功能的研究进展

因全球温室效应和气候变化影响,以及森林对CO2的固定作用,使林业碳汇得到了世界各国的广泛支持和发展。文章主要围绕森林植被碳汇、土壤碳汇研究现状,森林碳汇功能的不确定性以及森林管理与碳汇的关系4个方面对国内外森林碳汇的研究进展简要综述,为森林碳汇的科学研究提供基础。     

Development of an agroforestry carbon sequestration project in Khammam district,India

This paper addresses methodological issues in estimating carbon (C) sequestration potential, baseline determination, additionality and leakage in Khammam district, Andhra Pradesh, southern part of India. Technical potential for afforestation on cultivable wastelands, fallow, and marginal croplands was considered for Eucalyptus clonal plantations. Field studies for aboveground and belowground biomass, woody litter, and soil organic carbon for baseline and project scenarios were conducted to estimate the carbon sequestration potential. The baseline carbon stock was estimated to be 45.3 t C/ha, predominately in soils. The additional carbon sequestration potential under the project scenario for 30 years is estimated to be 12.8 t C/ha/year inclusive of harvest regimes and carbon emissions due to biomass burning and fertilizer application. Considering carbon storage in harvested wood, an additional 45% carbon benefit can be accounted. The project scenario has a higher benefit/cost ratio compared to the baseline scenario. The initial investment cost requirement, however, is high and lack of access to investment is a significant barrier for adoption of agroforestry in the district.

Monetizing the impacts of climate change on the Greek mining sector

Nowadays, it is widely acknowledged that climate change will affect mining industry and may pose significant risks to the economic viability of mining enterprises. So far, the vast majority of recent research efforts on this subject have focused, not surprisingly, on mining activities operating in northern areas. Nevertheless, climate change is an issue that should be of concern for all mining industry, worldwide. For this reason, this paper addresses the impacts of climate change on mining industry in the Mediterranean Region, and specifically Greece, and attempts, for the first time, to estimate the cost of climate change-related risks to the sector by means of a ??top-down?? approach. Towards this direction, climate projections based on the United Nations International Panel on Climate Change (IPCC) A1B emission scenario (which refers to a fast global economic growth, global population that peaks mid-century and then decreases, and a rapid introduction of new and more efficient technologies and a balanced energy source mix) for the time period 2021?C2050 are compared to climate data for the time period 1991?C2000, in order to quantify the impacts in physical terms. Then, both secondary and primary data sources are used to monetize the cost of climate change impacts to mining enterprises. Although there exist certain limitations in the research due to data unavailability, the study reveals the importance of the problem and provides useful findings. More specifically, the estimates indicate that Greece??s mining industry could face economic losses from climate change as high as US$0.8 billion. The cost of adaptation measures is about US$312 million, while that of mitigation measures that will burden the sector through the increased electricity prices is about US$478 million.