@article{Michetti:124380,
      recid = {124380},
      author = {Michetti, Melania and Parrado, Ramiro},
      title = {Improving land-use modelling within CGE to assess  forest-based mitigation potential and costs.},
      address = {2012},
      number = {1051-2016-85852},
      year = {2012},
      abstract = {We present a computable general equilibrium model properly  modified to analyse the potential role of the European  forestry sector within climate mitigation. Improvements on  database and modelling frameworks allow accounting for land  heterogeneity across and within regions and for land  transfers between agriculture, grazing, and forestry. The  forestry sector has been modified to track carbon  mitigation potential from both intensive and extensive  forest margins, which have been calibrated according to a  forest sectoral model. Two sets of climate policies are  simulated. In a first scenario, Europe is assumed to commit  unilaterally to reduce CO2 emissions of 20% and 30%, by  2020. In a second scenario, in addition to the emissions  quotas, progressively higher forest-sequestration subsidies  are paid to European firms to foster the implementation of  forestry practices. Results show that including forest  carbon in the compliance strategy decreases European policy  costs and carbon price, although public spending is  redirected towards the financing of the forest  sequestration subsidy. Comparing public spending and  savings in policy costs a net positive balance is reported  for all the European regions. Significant reductions in  carbon leakage or pressure on food security and  deforestation outside Europe are not acknowledged.},
      url = {http://ageconsearch.umn.edu/record/124380},
      doi = {https://doi.org/10.22004/ag.econ.124380},
}