@article{Bosello:331983,
      recid = {331983},
      author = {Bosello, Francesco and Parrado, Ramiro and Rosa, Renato},
      title = {Assessing the Market Benefits of Reducing Deforestation: A  General Equilibrium Investigation},
      address = {2010},
      pages = {20},
      year = {2010},
      note = {Presented at the 13th Annual Conference on Global Economic  Analysis, Penang, Malaysia},
      abstract = {Deforestation is one of the major sources of greenhouse  gases (GHG) emissions, accounting for around 17% of total  global GHG discharges. As the role forests play in the  global carbon cycle has been widely recognized, several  studies analysing the potential contribution of avoided  deforestation credits in a carbon market have already been  performed, showing that these credits should play a  substantial role in an overall portfolio of mitigation  strategies. Using a dynamic, multiregional Computable  General Equilibrium (CGE) model, the ICES model  (Intertemporal Computable Equilibrium System), this paper  follows a novel approach, since deforestation emission  reductions are not linked to a global carbon market, as  commonly used. Instead, we use a global warming approach  which provides an additional valuation criteria: the market  general equilibrium value of halting/reducing  deforestation, based on climate change impacts. This  exercise consists on the formulation of a scenario where  carbon emissions from deforestation are reduced by 50% and  100%, thereby producing a different CO2 concentration  levels in the atmosphere and a corresponding variation in  temperature. Those changes in temperature in turn impact  the economy at various levels, and the corresponding  indirect effects are then assessed. Moreover, such an  exercise may provide additional information to policy  makers considering the creation/participation of an  international fund to protect tropical forests. In fact,  market valuation for avoided deforestation can be provided  not only for a complete halt of deforestation but also for  different reduction targets. Finally, and taking advantage  of the dynamic feature of the model, different paths for a  same global level of reduced deforestation are simulated,  shedding new lights on the temporal value of reduced  deforestation.},
      url = {http://ageconsearch.umn.edu/record/331983},
}