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Land Conversion Pace under Uncertainty and Irreversibility: too fast or too slow? AgEcon
Di Corato, Luca; Moretto, Michele; Vergalli, Sergio.
In this paper stochastic dynamic programming is used to investigate land conversion decisions taken by a multitude of landholders under uncertainty about the value of environmental services and irreversible development. We study land conversion under competition on the market for agricultural products when voluntary and mandatory measures are combined by the Government to induce adequate participation in a conservation plan. We study the impact of uncertainty on the optimal conversion policy and discuss conversion dynamics under different policy scenarios on the basis of the relative long-run expected rate of deforestation. Interestingly, we show that uncertainty, even if it induces conversion postponement in the short-run, increases the average rate of...
Tipo: Working Paper Palavras-chave: Optimal Stopping; Deforestation; Payments for Environmental Services; Natural Resources Management; Risk and Uncertainty; C61; D81; Q24; Q58.
Ano: 2011 URL: http://purl.umn.edu/119107
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Could carbon payments be a solution to deforestation? Empirical evidence from Indonesia AgEcon
Seeberg-Elverfeldt, Christina; Schwarze, Stefan; Zeller, Manfred.
Up to 25 percent of all anthropogenic greenhouse gas emissions are caused by deforestation, and Indonesia is the third largest emitter worldwide due to land use change and deforestation. On the island of Sulawesi in the vicinity of the Lore Lindu National Park, smallholders contribute to conversion processes at the forest margin as a result of their agricultural practices. Specifically the area dedicated to cocoa plantations has increased from zero in 1979 to nearly 18,000 hectares in 2001. Some of these plots have been established inside the 220,000 hectares of the National Park. An intensification process is observed with a consequent reduction of the shade tree density. This study focuses on the impact of carbon sequestration payments for forest...
Tipo: Conference Paper or Presentation Palavras-chave: Payments for Environmental Services; Avoided Deforestation; Linear Programming; Resource /Energy Economics and Policy.
Ano: 2008 URL: http://purl.umn.edu/44182
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