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Abstract
This paper considers forestry as an approach to climate change mitigation in
the forests of southwest of France. In this region, little agricultural area is
available to afforest, as forest already covers the major part of the land
(more than 50%). However, shifts in forest management, especially longer
rotation lengths, can help to enhance carbon uptake. Many studies show that
appropriate tax systems implemented on carbon uptakes by trees are an
incentive to longer rotation length (see Capparos et al., 2003; Enzinger and
Jeffs, 2000; or Hoen and Solberg, 1994), but only a few of them attempt to
assess the cost effectiveness of tax systems. The aim of the present study is
to provide a measure of the cost effectiveness of a tax system, implemented
on forest management in south western French forests.
For a range of carbon prices between 0 and 100 euros/tC, rotations lengths
vary between 51 (Faustmann rotation) and 68 years, which increases
substantially carbon stocks.
The marginal costs of sequestering one ton of carbon vary between
90 and 140 euros. A sensitivity analysis shows that these costs vary
positively with wood prices (higher opportunity costs to extend rotation
lengths) and negatively with the discount rate.