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Appendix O
Deforestation Prevention
Assigning an economic cost to preventing deforestation is very
difficult, and estimates are based on the cost of providing
economic incentives to those who currently deforest the land. This
could be done either through providing a cash bonus for those who
practice sustainable agriculture or through purchasing land for use
as nature preserves.
The first fact needed is the annual rate of deforestation. Based
on a World Resources Institute (WRI, 1990) report, this is 20.4
million hectares per year. The arbitrary assumption can then be
made that 70 percent of such deforestation could be prevented by
using one of these programs.
The carbon content of the soil and vegetation in different
ecosystems has been estimated by the Conservation Foundation, World
Wildlife Fund, and Fundacion Neotropica (1988). This content, in
tons of carbon per hectare (ha),1 is
256 for an undisturbed forest, 210 for a logged or managed forest,
256 for a 30- to 40-year-old forest plantation, and 75 for land
deforested for use as pasture or agriculture. The net carbon saved
through forest protection is the difference between a managed
forest and pasture land or net carbon saved = 210 - 75 = 135 t
C/ha, which would be 495 t CO2/ha if
burned or otherwise oxidized. The carbon release avoided would be
(495 t CO2/ha)(0.7)(20.4 ×
106 ha/yr) = 7068 Mt of CO2 per year.
The cost of preventing this deforestation is based on
information from the Conservation Foundation and the World Wildlife
Fund. The World Wildlife Fund proposal would create an endowment of
$200/ha. Interest
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from that endowment is used as a financial incentive for those
living near a tropical forest to practice sustainable forestry. The
community retains ownership of the land and interest from the
endowment as long as it practices sustainable forestry. The purpose
of the endowment is to compensate the community for the additional
income it would have received by using current agricultural
techniques. At present, this method is being used in Costa Rica
(Conservation Fund et al., 1988).
By using these estimates, a cost-effectiveness of
is obtained.
Note
1. Tons (t) are metric; 1 Mt = 1 megaton = 1 million tons.
References
Conservation Foundation (CF), World Wildlife Fund (WWF), and
Fundacion Neotropica (FN). 1988. The Forestry Fund: An Endowment
for Forest Protection, Management, and Reforestation in Costa Rica.
Washington, D.C.: World Wildlife Fund.
World Resources Institute. 1990. World Resources 1990–91.
New York: Oxford University Press.
