Abstract:
This study uses the global climate-economy-biosphere (CoCEB) model developed in Part 1 to investigate economic aspects of deforestation control and carbon sequestration in forests, as well as the eficiency of carbon capture and storage (CCS) technologies as policy measures for climate change mitigation. We assume - as in Part 1 - that replacement of one technology with another occurs in terms of a logistic law, so that the same law also governs the dynamics of reduction in carbon dioxide emission using CCS technologies. In order to take into account the effect of deforestation control, a slightly more complex description of the carbon cycle than in Part 1 is needed. Consequently, we add a biomass equation into the CoCEB model and analyze the ensuing feedbacks and their effects on per capita gross domestic product (GDP) growth. Integrating biomass into the CoCEB and applying deforestation control as well as CCS technologies has the following results: (i) low investment in CCS contributes to reducing industrial carbon emissions and to increasing GDP, but further investment leads to a smaller reduction in emissions, as well as in the incremental GDP growth; and (ii) enhanced deforestation control contributes to a reduction in both deforestation emissions and in atmospheric carbon dioxide concentration, thus reducing the impacts of climate change and contributing to a slight appreciation of GDP growth. This effect is however very small compared to that of low-carbon technologies or CCS. We also find that the result in (i) is very sensitive to the formulation of CCS costs, while to the contrary, the results for deforestation control are less sensitive.
