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The growing evidence that increased levels of carbon dioxide in the atmosphere are related to global warming has prompted several countries to consider options for reducing and offsetting current carbon dioxide emissions. Opportunities for carbon sequestration with forestry activities have been analysed in detail primarily in industrialized nations, mainly because of data availability. This article presents a model that simulates a tropical forest stand in its role as a source of income and as a carbon store, and quantifies the potential for and cost-effectiveness of carbon sequestration through modifications of management practices. Results suggest that financing modifications of forestry practices may achieve net carbon sequestration in a relatively cost-effective way. Tropical countries with extensive forest resources may be in a position to offer cost-effective net carbon sequestration options.

This book provides the background theory behind two types of trade models rooted in economic theory and mathematical programming, and two econometric/statistical models. It shows the reader how to construct their own models to analyse policy questions in forestry and other sectors.