òòò½Íø Papers and Proceedings
ISSN 2574-0768 (Print) | ISSN 2574-0776 (Online)
Emission Prices, Biomass, and Biodiversity in Tropical Forests
òòò½Íø Papers and Proceedings
vol. 115,
May 2025
(pp. 391–96)
Abstract
We investigate how external emission prices influence robustly optimal reforestation in the Brazilian Amazon and the biodiversity impacts. Extending the findings of Assuncao et al. (2023), we revisit their spatial-dynamic model of land allocation under uncertainty. Their analysis reveals that financial transfers of $25 per ton of CO2e can shift the Amazon from emitting 17 gigatons of CO2e to capturing 18 gigatons over 30 years. Our study expands this work by integrating scientific insights to evaluate biodiversity outcomes, highlighting the broader ecological benefits of emission pricing as a mechanism for achieving both carbon sequestration and biodiversity conservation.Citation
Hansen, Lars Peter, and José A. Scheinkman. 2025. "Emission Prices, Biomass, and Biodiversity in Tropical Forests." òòò½Íø Papers and Proceedings 115: 391–96. DOI: 10.1257/pandp.20251071Additional Materials
JEL Classification
- O13 Economic Development: Agriculture; Natural Resources; Energy; Environment; Other Primary Products
- Q23 Renewable Resources and Conservation: Forestry
- Q24 Renewable Resources and Conservation: Land
- Q28 Renewable Resources and Conservation: Government Policy
- Q54 Climate; Natural Disasters and Their Management; Global Warming
- Q57 Ecological Economics: Ecosystem Services; Biodiversity Conservation; Bioeconomics; Industrial Ecology