investigation into the effects of an emissions trading scheme on forest management and land use in New Zealand
An econometric-process simulation model was constructed to investigate the effects of an Emissions Trading Scheme (ETS) on forest management and land use in New Zealand. Profit maximising agents which choose between forestry and agricultural land uses were simulated under carbon price scenarios of $20, $50 and $0 per tonne CO₂ equivalent. The model suggests that an ETS will lead to increased afforestation and rotation age, and decreased silviculture and deforestation.