TAILIEUCHUNG - Carbon-accounting methods and reforestation incentives

Moral judgment, or capacity to judge which alternatives are ethically acceptable and which are not and to determine the uprightness of the intention. Good behavior requires deliberation and deciding to carry out an action. Making sound moral judgments is previous to making a good decision. In this deliberation, practical wisdom plays a crucial role. It fosters upright moral reasoning by taking into account universal principles and the pertinent circumstances of each situation. Furthermore, some other relevant virtues in accounting, such as objectivity, open-mindedness, insight and perspicacity can be considered as integrated within practical wisdom. Moral motivation, understood. | The Australian Journal of Agricultural and Resource Economics 47 2 pp. 153-179 Carbon-accounting methods and reforestation incentives Oscar J. Cacho Robyn L. Hean and Russell M. Wisef The emission of greenhouse gases particularly carbon dioxide and the consequent potential for climate change are the focus of increasing international concern. Temporary land-use change and forestry projects LUCF can be implemented to offset permanent emissions of carbon dioxide from the energy sector. Several approaches to accounting for carbon sequestration in LUCF projects have been proposed. In the present paper the economic implications of adopting four of these approaches are evaluated in a normative context. The analysis is based on simulation of Australian farm-forestry systems. Results are interpreted from the standpoint of both investors and landholders. The role of baselines and transaction costs are discussed. 1. Introduction Concerns over global warming have led to proposals for the establishment of markets for greenhouse gas emission reductions. Although formal markets have not emerged a number of international exchanges have occurred whereby power companies and other energy-intensive industries have invested in green projects to partially offset their emissions of carbon dioxide CO2 and other greenhouse gases GHG Hassall and Associates 1999 p. 23 . The Kyoto Protocol KP has provided the context in which much of the policy debate on global warming has occurred. The KP established a commitment period 2008-2012 during which Annex I countries1 would undertake The authors would like to thank Anthony Signor for useful discussions that have contributed to the content of the present paper. The authors are also grateful to Jeff Bennett Jack Sinden and two anonymous referees for their helpful comments in a previous draft of the present manuscript. This research was funded by the Australian Centre for International Agricultural Research under project ASEM 1999 093 and NSW .

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