onsdag 17. juni 2009

Session 4: Arild Angelsen on What will it cost?

What will it cost? Paying for avoided emissions, paying for ecosystem services or paying to pollute? Costs and consequences of alternative models for maintaining forests and forest carbon.

Arild Angelsen, Professor at the Norwegian University of Life Sciences, Norway

Arild looked at the issue of forests and climate from the perspective of an economist. He outlined 3 types of costs associated with this: landowners costs (opportunity costs), government costs (budget costs), and international payment for REDD.

Among the questions examined were the following: who should be compensated? for what? (emission reductions, forest conservation), how should business as usual be defined? who owns the REDD rent? Who owns the carbon (a political question)? How to organize a system of differentiated pay?

Arild concluded with an interesting analogy, he compared forest carbon to a new cash crop for countries. A cash crop that required assistance to start production (define the project), assistance to produce the product, and that would receive payment for results.

Angelsen Rfn Redd Costs

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