Optimal spatial budget distribution of forest carbon payments that balances the returns and risks associated with conservation costs

作者: Seong-Hoon Cho , Bijay P. Sharma

DOI: 10.1007/S10668-019-00486-2

关键词: Opportunity costSustainable developmentCarbon storageBusinessNatural resource economicsPaymentFrontierVariance (accounting)Appalachian RegionDistribution (economics)

摘要: We determine the optimal spatial budget distribution of forest carbon payments that balances returns and risks associated with conservation costs (opportunity cost forestland) affected by future economic growth scenarios using a case study central southern Appalachian region USA. A further focus is to evaluate county-level tradeoffs between affect expected benefits variance storage constructing mean–variance tradeoff frontier. Because concavity frontier, mitigating risk dispersing allocations among counties advisable, particularly if agencies on little or no regard for at initial policy-making stage. The different dispersions weights placed minimization provide clear evidence targeting restoration investments such as needs consider preferences regarding costs. Our findings suggest failing anticipate potential will lead suboptimal targets allocations, are averse return-maximizing objective.

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