NDLI: REDD+ and international leakage via food and timber markets: a CGE analysis

Content Provider	Springer Nature Link
Author	Kuik, On
Copyright Year	2013
Abstract	This paper studies the effect of international trade in food and timber on land use and potential carbon leakage in the context of actions to reduce emissions from deforestation and forest degradation (REDD+). First a simple analytical model of international leakage is presented that focuses on international competition between firms that produce food and timber. A formula for the leakage rate in the model is derived. The results of the analytical model are then tested with a large Computable General Equilibrium (CGE) model and it is verified that the qualitative results from the analytical model hold. Finally, a scenario of leakage rate trajectories is presented for a number of key tropical forest regions for the next two decades and a sensitivity analysis is performed on key parameters. Computed leakage rates range between 0.5 % for Brazil and 11.3 % for Malaysia and are fairly stable over the projection period. Leakage rates increase with a higher supply elasticity of land and a higher trade elasticity, they decrease with a higher elasticity of input substitution in production and appear to be independent of the rates of forest conservation and absolute prices of food and timber.
Starting Page	641
Ending Page	655
Page Count	15
File Format	PDF
ISSN	13812386
Journal	Mitigation and Adaptation Strategies for Global Change
Volume Number	19
Issue Number	6
e-ISSN	15731596
Language	English
Publisher	Springer Netherlands
Publisher Date	2013-12-01
Publisher Place	Dordrecht
Access Restriction	One Nation One Subscription (ONOS)
Subject Keyword	REDD+ Carbon-leakage Deforestation Trade and the environment iLUC Atmospheric Sciences Climate Change Management and Policy Environmental Management
Content Type	Text
Resource Type	Article
Subject	Ecology Global and Planetary Change

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