Mathilda Eriksson: CERE and the Department of Economics, Umeå University, Postal: Department of Economics, Umeå University, S-901 87, Umeå, Sweden
Abstract: This paper develops the FRICE, a framework that determines optimal levels of forest climate tools in the context of global climate policy. The paper integrates afforestation and avoided deforestation into the well-known global multi-regional integrated assessment model, RICE-2010. The paper finds that climate forest tools can play an essential role in global climate policy and that this role is increasingly important under stringent temperature targets. Under a 2C temperature target, the model reveals that emission reductions from avoided deforestation are quickly exhausted whereas afforestation is capable of substantially reducing emission reductions in both the medium and long run. The model also indicates that the most significant reductions in emissions from avoided deforestation and afforestation can be achieved by focusing policy efforts on tropical forests.
37 pages, March 24, 2016
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