Linking Reduced Deforestation and a Global Carbon Market: Implications for Clean Energy Technology and Policy Flexibility
نویسندگان
چکیده
A key climate policy question is how to balance low-cost emission reductions from land-based activities available in the near term with investments to drive technological innovation in energy, industry, and other sectors over the medium to long term. This paper uses a global climate-energyeconomy model to investigate the implications of linking Reduced Emissions from Deforestation and Forest Degradation (REDD) credits to a global carbon market, with a focus on the consequences for technology innovation in the energy sector. Deforestation mitigation lowers the total costs of a policy to stabilize emissions at 536 ppmv of CO2-equivalent by an estimated 10-25%, depending on the policy scenario. Alternatively a global REDD program enables additional reductions of about 20 ppmv with no added costs compared to an energy-sector only policy. These cost savings entail modest tradeoffs in terms of reduced clean energy innovation overall, with small positive effects on the development of some technologies, including carbon capture and storage. Moreover, while reduced clean energy innovation could in principle handicap future efforts to reduce global emissions, this analysis suggests that the availability of REDD helps in net terms to preserve climate policy flexibility. The synergy between REDD and credit banking provides a head start on climate mitigation that is an aggregate hedge against potentially higher costs due to unexpected future increases in the stringency of climate policy. Integrating REDD into global carbon markets could thus lower policy costs and facilitate more ambitious climate policies now and in the future.
منابع مشابه
Forestry and the carbon market response to stabilize climate
This paper investigates the potential contribution of forestry management in meeting a CO2 stabilization policy of 550 ppmv by 2100. In order to assess the optimal response of the carbon market to forest sequestration we couple two global models. An energy-economy-climate model for the study of climate policies is linked with a detailed forestry model through an iterative procedure to provide t...
متن کاملLinking Reduced Deforestation and a Global Carbon Market: Impacts on Costs, Financial Flows, and Technological Innovation
متن کامل
Carbon markets in space and time
This paper analyses the design of carbon markets in time (intertemporally) and space (geographically) from first principles, starting initially with a relatively clean slate and asking what an optimal global carbon market would look like by around 2030. Our focus is on firmlevel trading systems, although much of what we say would also apply to government-level trading (e.g., AAU trading under t...
متن کاملLeakage Implications for European Timber Markets from Reducing Deforestation in Developing Countries
Forest management strategies and policies such as REDD (reduced emissions from deforestation and forest degradation) may have unintentional implications for forest sectors in countries not targeted by such policies. The success of a policy effort like REDD would result in a significant reduction in deforestation and forest degradation and an ensuing reduction in the supply of natural forest tim...
متن کاملLand-use and carbon cycle responses to moderate climate change: implications for land-based mitigation?
Climate change has impacts on agricultural yields, which could alter cropland requirements and hence deforestation rates. Thus, land-use responses to climate change might influence terrestrial carbon stocks. Moreover, climate change could alter the carbon storage capacity of the terrestrial biosphere and hence the land-based mitigation potential. We use a global spatially explicit economic land...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
عنوان ژورنال:
دوره شماره
صفحات -
تاریخ انتشار 2010