ABSTRACT This paper examines the economic potential for fire management to provide offsets to car... more ABSTRACT This paper examines the economic potential for fire management to provide offsets to carbon markets in the savannas of northern Australia. Long-term field trials in Australia's savannas have quantified greenhouse gas (GHG) emissions abatement resulting from improved fire management. However, little is known about the economic potential of fire management projects or the locations where projects might be economically viable for providing GHG offsets. A benefit–cost analysis of fire management for GHG offsets is presented here, which includes spatially explicit estimates for GHG abatement under three assumptions of management efficacy (conservative, empirically based, upper potential). The total supply of GHG abatement is estimated under different prices and management efficacy assumptions, and areas that pass the benefit–cost analysis are identified. At the Australian Government's carbon price of A$23 per metric tonne of carbon dioxide equivalents (CO2-e), fire management would be economically viable across 51 million hectares, all within the higher monsoonal rainfall regions of northern Australia, abating 1.6 million tonnes of CO2-e per year. These estimates suggest that fire management projects can contribute to GHG abatement targets and be financially viable across large areas of northern Australia. Additional benefits are anticipated from these projects for biodiversity conservation, livelihoods for indigenous Australians and economic development in remote regions.
Abstract: Almost all biodiversity incentive programs in Austr alia, including auctions, are based... more Abstract: Almost all biodiversity incentive programs in Austr alia, including auctions, are based on either payments for inputs o r on modelled outcomes of proposed input changes. Making conservation program payments conditional on outcomes offers potential efficiency and innovation improvements over input based contracts. This paper explores the trade-offs invol ved in choosing the payment criteria for biodiversity tenders. A model where the budget for a conservation tender can be allocated to input, outcome or mixed payments is us ed to explore the impacts of hidden actions, adverse selection, and landholder r isk aversion on the optimal policy design.
Australian Journal of Entomology - AUST J ENTOMOL, 2008
ABSTRACT Vespula germanica has been accidentally introduced into Australia, where it has now esta... more ABSTRACT Vespula germanica has been accidentally introduced into Australia, where it has now established as a horticultural, agricultural, environmental and nuisance pest. Despite comprehensive and often expensive eradication programs, remarkably little information exists for the species in Australia. Most previous studies were conducted in its native range in England, and in New Zealand where V. germanica has also been introduced. Data on nesting sites in Adelaide were collected over two seasons, with a total of 2640 nests surveyed. The majority of nests (67%) were found below ground, mostly in soil. Twenty-nine percent of nests were found in artificial structures, while the remainder of nests was located above ground. Variation among different habitat types suggests that the species can utilise whatever nest sites are available. Colony duration, timing and seasonal development were also examined by collecting wasp nests over three seasons. Nests were found between November and May. Average mature colonies contained over 9500 small (worker) and 3600 large (queen and male) cells, with some large nests consisting of over 27 500 cells. By the end of May, such colonies have 15 000 wasps emerging from small cells and 2500 wasps emerging from large cells. This is 35–80% more than the numbers of adults produced by V. germanica colonies in England. In addition, in southern Australia a proportion of nests overwinter and survive into the next season, whereas all nests collapse and die out at this time in England. A significant linear relationship was found between wasp traffic and various measures of nest size. These results indicate that in the absence of an adverse climate, V. germanica nests can attain a substantial size. Greater numbers of queens produced in nests may also facilitate a faster rate of population increase in Australia.
Economic Papers: A journal of applied economics and policy, 2013
ABSTRACT There is great potential for soil carbon sequestration to contribute to climate change m... more ABSTRACT There is great potential for soil carbon sequestration to contribute to climate change mitigation. However, there are a number of difficulties in measuring and verifying soil carbon sequestration for market‐based policies for soil carbon sequestration. In particular, measurement costs and other transaction costs will ultimately determine the practicality of any policy. The relationship between soil carbon spatial heterogeneity, measurement precision and measurement costs is central to the design of contracts for soil carbon sequestration. Importantly, these factors determine the practicality of policy alternatives and the efficiency of alternative contract designs. The details of contract design change the incentives faced by landholders as well as the allocation of risk between sellers and buyers. For example, some contract designs link payments to alternative land management practices whereas others link payments to directly measured outcomes. Research in soil science provides the knowledge necessary to link land use and management to sequestration and the measurement approaches required to verify sequestration. Careful consideration of these factors in market design is needed to determine whether potential benefits outweigh the costs of implementing any policy intended to promote soil carbon sequestration.
... options for carbon sequestration, wood production and new investment opportunities ... of off... more ... options for carbon sequestration, wood production and new investment opportunities ... of offsetting these emissions and examining how farmers and others can invest in carbon sequestration offsets and/or wood production. Farmers may also be confronted with obligations ...
The potential for soil carbon sequestration to play a significant role in meeting Australia’s gre... more The potential for soil carbon sequestration to play a significant role in meeting Australia’s greenhouse reduction targets has attracted widespread interest. Despite this interest, the economic scope for soil carbon sequestration remains poorly understood and the practical approaches that could be used to capture any opportunities have not been explored. In this paper we present preliminary results on a pilot
ABSTRACT This paper examines the economic potential for fire management to provide offsets to car... more ABSTRACT This paper examines the economic potential for fire management to provide offsets to carbon markets in the savannas of northern Australia. Long-term field trials in Australia's savannas have quantified greenhouse gas (GHG) emissions abatement resulting from improved fire management. However, little is known about the economic potential of fire management projects or the locations where projects might be economically viable for providing GHG offsets. A benefit–cost analysis of fire management for GHG offsets is presented here, which includes spatially explicit estimates for GHG abatement under three assumptions of management efficacy (conservative, empirically based, upper potential). The total supply of GHG abatement is estimated under different prices and management efficacy assumptions, and areas that pass the benefit–cost analysis are identified. At the Australian Government's carbon price of A$23 per metric tonne of carbon dioxide equivalents (CO2-e), fire management would be economically viable across 51 million hectares, all within the higher monsoonal rainfall regions of northern Australia, abating 1.6 million tonnes of CO2-e per year. These estimates suggest that fire management projects can contribute to GHG abatement targets and be financially viable across large areas of northern Australia. Additional benefits are anticipated from these projects for biodiversity conservation, livelihoods for indigenous Australians and economic development in remote regions.
ABSTRACT Industrial plantation forestry has the potential to make a significant contribution to c... more ABSTRACT Industrial plantation forestry has the potential to make a significant contribution to carbon sequestration, subject to eligibility in carbon markets and other accounting rules. We considered the sequestration potential and economic viability of industrial forestry in four case studies across Australia: softwood sawlog production in regions of high and low rainfall, and hardwood pulpwood production in regions of high and medium rainfall. We considered both the establishment of new plantations on cleared agricultural land and increases in rotation length of existing forests to increase carbon sequestration. Our study found that establishment of new plantations in cleared agricultural land is generally not economically viable with current costs of establishment (including land value) and returns for wood products. On average, for scenarios of hardwoods and softwoods, a payment for carbon sequestration of about $10 and $30 per tonne of CO2-e is required, respectively, for expansion of the estate to be economically viable (AU$2011). With the exception of softwoods grown in high rainfall, even higher payments for carbon sequestration are required to make increasing rotation lengths of existing forests economically viable, with a break even carbon price for hardwoods and softwoods of about $10 and $40 per tonne of CO2-e, respectively. Although crediting carbon stored in soil and wood products can significantly increase economic viability in some regions, more work is required to verify these predictions and to develop cost-effective measurement methodologies. In contrast, our analysis showed that there was little impact on economic viability of debiting emissions associated with forestry operations and harvesting, as these are a small proportion of the overall carbon balance. On an average annual basis, employment in industrial plantations was found to be comparable to alternative land uses, suggesting forestry does not result in a net loss of regional jobs. We conclude that there is considerable sequestration potential through industrial plantation management if the price on carbon is sufficiently high (e.g. $50 per tonne of CO2-e) and there are no limiting institutional factors (e.g. policies that restrict expansion of plantations onto agricultural land).
ABSTRACT This paper examines the economic potential for fire management to provide offsets to car... more ABSTRACT This paper examines the economic potential for fire management to provide offsets to carbon markets in the savannas of northern Australia. Long-term field trials in Australia's savannas have quantified greenhouse gas (GHG) emissions abatement resulting from improved fire management. However, little is known about the economic potential of fire management projects or the locations where projects might be economically viable for providing GHG offsets. A benefit–cost analysis of fire management for GHG offsets is presented here, which includes spatially explicit estimates for GHG abatement under three assumptions of management efficacy (conservative, empirically based, upper potential). The total supply of GHG abatement is estimated under different prices and management efficacy assumptions, and areas that pass the benefit–cost analysis are identified. At the Australian Government's carbon price of A$23 per metric tonne of carbon dioxide equivalents (CO2-e), fire management would be economically viable across 51 million hectares, all within the higher monsoonal rainfall regions of northern Australia, abating 1.6 million tonnes of CO2-e per year. These estimates suggest that fire management projects can contribute to GHG abatement targets and be financially viable across large areas of northern Australia. Additional benefits are anticipated from these projects for biodiversity conservation, livelihoods for indigenous Australians and economic development in remote regions.
Abstract: Almost all biodiversity incentive programs in Austr alia, including auctions, are based... more Abstract: Almost all biodiversity incentive programs in Austr alia, including auctions, are based on either payments for inputs o r on modelled outcomes of proposed input changes. Making conservation program payments conditional on outcomes offers potential efficiency and innovation improvements over input based contracts. This paper explores the trade-offs invol ved in choosing the payment criteria for biodiversity tenders. A model where the budget for a conservation tender can be allocated to input, outcome or mixed payments is us ed to explore the impacts of hidden actions, adverse selection, and landholder r isk aversion on the optimal policy design.
Australian Journal of Entomology - AUST J ENTOMOL, 2008
ABSTRACT Vespula germanica has been accidentally introduced into Australia, where it has now esta... more ABSTRACT Vespula germanica has been accidentally introduced into Australia, where it has now established as a horticultural, agricultural, environmental and nuisance pest. Despite comprehensive and often expensive eradication programs, remarkably little information exists for the species in Australia. Most previous studies were conducted in its native range in England, and in New Zealand where V. germanica has also been introduced. Data on nesting sites in Adelaide were collected over two seasons, with a total of 2640 nests surveyed. The majority of nests (67%) were found below ground, mostly in soil. Twenty-nine percent of nests were found in artificial structures, while the remainder of nests was located above ground. Variation among different habitat types suggests that the species can utilise whatever nest sites are available. Colony duration, timing and seasonal development were also examined by collecting wasp nests over three seasons. Nests were found between November and May. Average mature colonies contained over 9500 small (worker) and 3600 large (queen and male) cells, with some large nests consisting of over 27 500 cells. By the end of May, such colonies have 15 000 wasps emerging from small cells and 2500 wasps emerging from large cells. This is 35–80% more than the numbers of adults produced by V. germanica colonies in England. In addition, in southern Australia a proportion of nests overwinter and survive into the next season, whereas all nests collapse and die out at this time in England. A significant linear relationship was found between wasp traffic and various measures of nest size. These results indicate that in the absence of an adverse climate, V. germanica nests can attain a substantial size. Greater numbers of queens produced in nests may also facilitate a faster rate of population increase in Australia.
Economic Papers: A journal of applied economics and policy, 2013
ABSTRACT There is great potential for soil carbon sequestration to contribute to climate change m... more ABSTRACT There is great potential for soil carbon sequestration to contribute to climate change mitigation. However, there are a number of difficulties in measuring and verifying soil carbon sequestration for market‐based policies for soil carbon sequestration. In particular, measurement costs and other transaction costs will ultimately determine the practicality of any policy. The relationship between soil carbon spatial heterogeneity, measurement precision and measurement costs is central to the design of contracts for soil carbon sequestration. Importantly, these factors determine the practicality of policy alternatives and the efficiency of alternative contract designs. The details of contract design change the incentives faced by landholders as well as the allocation of risk between sellers and buyers. For example, some contract designs link payments to alternative land management practices whereas others link payments to directly measured outcomes. Research in soil science provides the knowledge necessary to link land use and management to sequestration and the measurement approaches required to verify sequestration. Careful consideration of these factors in market design is needed to determine whether potential benefits outweigh the costs of implementing any policy intended to promote soil carbon sequestration.
... options for carbon sequestration, wood production and new investment opportunities ... of off... more ... options for carbon sequestration, wood production and new investment opportunities ... of offsetting these emissions and examining how farmers and others can invest in carbon sequestration offsets and/or wood production. Farmers may also be confronted with obligations ...
The potential for soil carbon sequestration to play a significant role in meeting Australia’s gre... more The potential for soil carbon sequestration to play a significant role in meeting Australia’s greenhouse reduction targets has attracted widespread interest. Despite this interest, the economic scope for soil carbon sequestration remains poorly understood and the practical approaches that could be used to capture any opportunities have not been explored. In this paper we present preliminary results on a pilot
ABSTRACT This paper examines the economic potential for fire management to provide offsets to car... more ABSTRACT This paper examines the economic potential for fire management to provide offsets to carbon markets in the savannas of northern Australia. Long-term field trials in Australia's savannas have quantified greenhouse gas (GHG) emissions abatement resulting from improved fire management. However, little is known about the economic potential of fire management projects or the locations where projects might be economically viable for providing GHG offsets. A benefit–cost analysis of fire management for GHG offsets is presented here, which includes spatially explicit estimates for GHG abatement under three assumptions of management efficacy (conservative, empirically based, upper potential). The total supply of GHG abatement is estimated under different prices and management efficacy assumptions, and areas that pass the benefit–cost analysis are identified. At the Australian Government's carbon price of A$23 per metric tonne of carbon dioxide equivalents (CO2-e), fire management would be economically viable across 51 million hectares, all within the higher monsoonal rainfall regions of northern Australia, abating 1.6 million tonnes of CO2-e per year. These estimates suggest that fire management projects can contribute to GHG abatement targets and be financially viable across large areas of northern Australia. Additional benefits are anticipated from these projects for biodiversity conservation, livelihoods for indigenous Australians and economic development in remote regions.
ABSTRACT Industrial plantation forestry has the potential to make a significant contribution to c... more ABSTRACT Industrial plantation forestry has the potential to make a significant contribution to carbon sequestration, subject to eligibility in carbon markets and other accounting rules. We considered the sequestration potential and economic viability of industrial forestry in four case studies across Australia: softwood sawlog production in regions of high and low rainfall, and hardwood pulpwood production in regions of high and medium rainfall. We considered both the establishment of new plantations on cleared agricultural land and increases in rotation length of existing forests to increase carbon sequestration. Our study found that establishment of new plantations in cleared agricultural land is generally not economically viable with current costs of establishment (including land value) and returns for wood products. On average, for scenarios of hardwoods and softwoods, a payment for carbon sequestration of about $10 and $30 per tonne of CO2-e is required, respectively, for expansion of the estate to be economically viable (AU$2011). With the exception of softwoods grown in high rainfall, even higher payments for carbon sequestration are required to make increasing rotation lengths of existing forests economically viable, with a break even carbon price for hardwoods and softwoods of about $10 and $40 per tonne of CO2-e, respectively. Although crediting carbon stored in soil and wood products can significantly increase economic viability in some regions, more work is required to verify these predictions and to develop cost-effective measurement methodologies. In contrast, our analysis showed that there was little impact on economic viability of debiting emissions associated with forestry operations and harvesting, as these are a small proportion of the overall carbon balance. On an average annual basis, employment in industrial plantations was found to be comparable to alternative land uses, suggesting forestry does not result in a net loss of regional jobs. We conclude that there is considerable sequestration potential through industrial plantation management if the price on carbon is sufficiently high (e.g. $50 per tonne of CO2-e) and there are no limiting institutional factors (e.g. policies that restrict expansion of plantations onto agricultural land).
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