Potential synergies between existing multilateral environmental agreements in the implementation of Land Use, Land Use Change and Forestry activities

There is potential for synergy between the global environmental conventions on climate change, biodiversity and desertification: changes in land management and land use undertaken to reduce net greenhouse gas emissions can simultaneously deliver positive outcomes for conservation of biodiversity, and mitigation of desertification and land degradation. However, while there can be complementarities between the three environmental goals, there are often tradeoffs. Thus, the challenge lies in developing land use policies that promote optimal environmental outcomes, and in implementing these locally to promote sustainable development. The paper considers synergies and tradeoffs in implementing land use measures to address the objectives of the three global environmental conventions, both from an environmental and economic perspective. The intention is to provide environmental scientists and policy makers with a broad overview of these considerations, and the benefits of addressing the conventions simultaneously.Climate change, LULUCF, Biodiversity, Desertification, Sustainable development.

Implications of and possible responses to climate change

Climate change is expected to worsen food insecurity and seriously undermines rural development prospects. It makes it harder to achieve the Millenium Development Goals and ensure a sustainable future beyond 2015. Findings from the recent 4th assessment report of IPCC, Working Group II indicate that already towards 2050 with respect to food crops yield losses between 10 and 30 % can be expected as compared to current conditions in large parts of Africa, including Western, Eastern and southern Africa. Climate change is likely to increase disparities between developed and the developing world, while many uncertainties remain. It is, for instance, estimated that developing countries would need to bear 75-80 % of the costs of damages caused by a changing climate. The prevention of such threats cannot rely on economic growth, but requires climate policies that combine enhancement of development with reduction of vulnerabilities and effective financing mechanisms that support the transition to low-carbon economics. The major strategies to reduce the potentially harmful effects of global changes, especially climate change are 1) adaptation of food and farming systems to climate change, 2) enhancing their resilience and adaptive capacity to changes in climate variability and extremes that are difficult to predict, and to global change more generally (including socio-economic changes), and 3) mitigation of climate change and trading the options to mitigate in low-income countries on the global carbon markets to create a substantial financial flow from the North to the South

ECONOMICS OF SEQUESTERING CARBON IN THE U.S. AGRICULTURAL SECTOR

Atmospheric concentrations of greenhouse gases can be reduced by withdrawing carbon from the atmosphere and sequestering it in soils and biomass. This report analyzes the performance of alternative incentive designs and payment levels if farmers were paid to adopt land uses and management practices that raise soil carbon levels. At payment levels below $10 per metric ton for permanently sequestered carbon, analysis suggests landowners would find it more cost effective to adopt changes in rotations and tillage practices. At higher payment levels, afforestation dominates sequestration activities, mostly through conversion of pastureland. Across payment levels, the economic potential to sequester carbon is much lower than the technical potential reported in soil science studies. The most cost-effective payment design adjusts payment levels to account both for the length of time farmers are willing to commit to sequestration activities and for net sequestration. A 50-percent cost-share for cropland conversion to forestry or grasslands would increase sequestration at low carbon payment levels but not at high payment levels.Carbon sequestration, greenhouse gas mitigation, afforestation, conservation tillage, no-till, incentive design, leakage, carbon stock, permanence, Environmental Economics and Policy,

Disposition of precipitation: Supply and Demand for Water Use by New Tree Plantations

As the greatest rainwater users among all vegetative land covers, tree plantations have been employed strategically to mitigate salinity and water-logging problems. However, large-scale commercial tree plantations in high rainfall areas reduce fresh water inflows to river systems supporting downstream communities, agricultural industries and wetland environmental assets. A bio-economic model was used to estimate economic demand for water by future upstream plantations in a sub-catchment (the 2.8 million ha Macquarie valley in NSW) of the Murray-Darling Basin, Australia. Given four tree-product values, impacts were simulated under two settings: without and with the requirement that permanent water entitlements be purchased from downstream entitlement holders before establishing a tree plantation. Without this requirement, gains in economic surplus from expanding tree plantations exceeded economic losses by downstream irrigators, and stock and domestic water users, but resulted in reductions of up to 154 GL (gigalitres) in annual flows to wetland environments. With this requirement, smaller gains in upstream economic surplus, added to downstream gains, could total $330 million while preserving environmental flows. Extending downstream water markets to new upstream tree plantations, to equilibrate marginal values across water uses, helps ensure water entitlements are not diminished without compensation. Outcomes include better economic-efficiency, social-equity and environmental-sustainability.Environmental Economics and Policy, forest, environmental services, catchment, water sources, interception, entitlement, supply, demand, market, economic surplus, evapo-transpiration, urban water, irrigation, wetlands.,

Economic changes and afforestation incentives in rural China

This paper uses provincial macro-data from the mid 1980s onwards to investigate the determinants of land-use choice in rural China, by paying particularattention to the decision to plant trees as competing with agriculture. The evidence supports the importance of economic motivations in the afforestation decision. A profitseeking behavior is found to be at stake in the decision to plant trees, which is made according to both the relative profitability of forestry against agriculture, and their relative risks. Afforestation is also found to strongly depend on the pressure upon land as well ason household wealth.afforestation incentives; rural China

Economics of soil and water conservation

The Ethiopian highlands, inhabited by the vast majority of the Ethiopian human and livestock populations, are under continuous threat from soil erosion. Land degradation induced by soil erosion is considered to be among the major factors responsible for the recurrent malnutrition and famine problems in Ethiopia. Conservation efforts during recent decades have succeeded neither in triggering voluntary adoption of conservation practices nor in mitigating soil erosion problems. The purpose of this thesis is, therefore, to understand the socio-economic aspects underlying soil and water conservation decisions in the context of subsistence farmers in the Eastern Highlands of Ethiopia. In articles I, III, and IV, the farmers’ decision problem is modeled as a utility maximization problem, and econometric models are used to link the statistical model of observed data and the economic model. Stochastic dominance criteria are used, in article I, to determine whether adoption of a conservation practice results in higher expected grain yield and income and/or reduced variability. Limited dependent variable econometric models are used in articles III and IV in order to determine factors that influence farmers’ decisions on soil and water conservation, and their preference for types of development intervention. In article II, the decision problem is modeled as an intertemporal net benefit maximization problem, and a dynamic programming optimization model is applied to determine the optimal path of investment in soil and water conservation. Findings in article I suggest that conservation results in higher expected grain yield and income, but does not support the hypothesis that conservation unambiguously results in less variability than no-conservation. In article II, it is shown that the optimal path of investment in soil and water conservation depends on the discount rate and grain prices. The results also suggest that erosive agricultural practices yield higher return in the short-term, whereas conservation yields a higher and sustainable return in the long-term. The need to design incentive mechanisms that encourage farmers to have a longer planning horizon are among important suggestions proposed in articles I and II. Results, in article III, suggest that specific physical conditions of plots and socioeconomic characteristics of farm households influence the soil and water conservation decision behavior of farmers. Article IV suggests that the perceived priority of farmers with regard to agricultural problems and socio-economic characteristics, determines their preference for the type of development intervention. The results also suggest that there exists a complementarity between different interventions and hence a need to address them simultaneously to ensure a higher return from interventions. An important lesson to be drawn from articles III and IV is that differences in farming conditions and complementarities between policy programs need to be noted in any intervention program

ACCOUNTING FOR FOREST RESOURCES IN ZIMBABWE

Resource /Energy Economics and Policy,

Modeling Linkages Between Climate Policy and Land Use: An Overview

Agriculture and forestry play an important role in emitting and storing greenhouse gases. For an efficient and cost-effective climate policy it is therefore important to explicitly include land use, land use change, and forestry (LULUCF) in economy-climate models. This paper gives an overview and assessment of existing approaches to include land use, land-use change, and forestry into climate-economy models or to link economy-climate models to land-use models.Climate Change, Climate Policy, Modeling, Land Use

Extending land footprints towards characterizing sustainability of land use

The global trade of biomass-based products leads to an increasing regional decoupling of the area of production and consumption. Area-based land footprint calculations attribute the extents of land use required to prevailing national consumption patterns. Another report (Fischer et al., 2016) of the present study describes the methodology for the calculation of area-based footprints and presents results for Germany and the EU. Beyond area extents, additional information is needed to assess the sustainability of land use, requiring further analyses regarding environmental impacts and preservation of land quality and ecosystem services. This report discusses extensions of area-based land footprints with meaningful impact-oriented indicators for the assessment of the effects of different consumption patterns on the ecosystems and sustainability of land use. First, existing indicators for representing the environmental impacts of land use are introduced in the context of their linkages and complementarity to area-based land footprints. The report discusses the following key indicators, which were identified as particularly relevant during an export workshop: System indicators, which qualify the area-based footprints across globally very different potential land productivities,deforestation footprint, energy use in agriculture, and irrigation water use in agriculture classified by degree of water scarcity. We introduce the methods developed for the quantification of system indicators for cropland and grassland footprints and for the deforestation footprint, and present results for Germany and the EU