The Impact of Afforestation Support and Carbon Sequestration Subsidy on Forestation and Social Welfare in Taiwan
Date Issued
2007
Date
2007
Author(s)
Shen, Chih-Pei
DOI
zh-TW
Abstract
The private forest land owners are normally lack of incentive to provide goods which have public good characteristics through market mechanism. In order to increase the economic incentive for forest farmers in managing the forestation, support and/or subsidy from government with the provision public goods is essential. However, the utilization of private forest land is competitive between cultivating different agricultural crops and growing trees. There are various positive sides of growing trees. Among these, it is to increase the sequestration of carbon dioxide. This, however, might induce the increasing prices of agricultural crops and decreasing price of timbers. As a result, the total benefit or welfare for the producers and consumers both for agricultural and forestry sectors are not necessary positive.
The purpose of this study is to take into account the special forestry land ownership in Taiwan, i. e. very low percentage of private owner forestry land as compared to the total forestry land, and construct a model in which the land utilization between agriculture and forestry is balance. This is a model reflects a long-term decision making that involves changing the acreage of afforestation, prices of competitive agricultural crops, time, and discount rate. Simulations are then performed to compare the scenarios between policy with afforestation support and without support and among policies with afforestation support plus various levels of carbon sequestration subsidies. It is to observe the change of afforestation acreages and social welfare under different combination of policies.
The result has shown that it is capable to increase the afforestation acreages regardless of the policy with afforestation support or carbon sequestration subsidy. Besides, the carbon sequestration subsidy is benefit to prolong the felling age of new forest lands. However, if there is only afforestation support and without carbon sequestration subsidy, farmers might cut down the trees when the silviculture encouragement has ended five years later. And forest farmers are reluctant to invest in afforestation if there is no support for afforestation. It is, however, a subsidy of more than NT$100 per ton on carbon sequestration, forest farmers are willing to prolong the felling age limit for oncoming forests. For carbon sequestration subsidy greater than NT$1,000 per ton, forest farmers are willing to invest in afforestation despite there is no afforestation support.
Subjects
林業獎勵政策
正外部效益
數學規劃
競租作物
政策模擬
forestry support policy
positive externality
mathematical programming
competitive crops
agriculture and forest sector model
policy simulation
SDGs
Type
thesis
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