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This research examines the effects of various factors on farmer participation in agricultural tree plantations for economic, environmental, social and carbon-uptake purposes, and potential costs of sequestering carbon through afforestation in western Canada. Using data from a survey of landowners, a discrete choice random utility model is used to determine the probability of landowners’ participation and corresponding mean willingness to accept (WTA) compensation for a tree-planting program. WTA includes positive and negative benefits to landowners from planting trees, benefits not captured by foregone returns from agricultural activities on marginal land. Estimates of WTA are less than foregone returns, but even so average costs of creating carbon credits still exceed their projected value under a CO2-emissions trading scheme.

Keywords: willingness to accept compensation for tree planting ; afforestation ; climate change

Subject(s): Environmental Economics and Policy

Land Economics/Use

Resource /Energy Economics and Policy

Issue Date: 2005-07

Publication Type: Working or Discussion Paper

PURL Identifier: http://purl.umn.edu/37017

Total Pages: 33

JEL Codes: Q15; Q23; Q54

Series Statement: REPA Working Paper

2005-09

Record appears in: University of Victoria > Resource Economics and Policy Analysis Research Group > Working Papers





Autor: Shaikh, Sabina L. ; Sun, Lili ; van Kooten, G. Cornelis

Fuente: http://ageconsearch.umn.edu/record/37017?ln=en







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