Negative versus Positive Carbon Leakage: The Role of Forest Management Regimes

A model of two regions with a common wood market is introduced. Regions may be of two types, according to their forest management regime, namely managed (M) and unmanaged (U) forests. When regions are of the same type,... [ view full abstract ]

A model of two regions with a common wood market is introduced. Regions may be of two types, according to their forest management regime, namely managed (M) and unmanaged (U) forests. When regions are of the same type, unilateral forest carbon mitigation and enhancement actions lead to positive carbon leakage. When regions are of different types, such actions result in negative carbon leakage.