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The regional economic impacts of introducing dual function forestry into an agricultural landscape

  • Year: 2011
  • Author: Cockfield, Geoff; Chalmers, Linden; Apan, Armando; Thompson, David
  • Journal Name: Australasian Journal of Regional Studies, The
  • Journal Number: Vol. 17, No. 2
  • Country: Australia

A greenhouse gas emissions abatement scheme that includes payments for sequestration could encourage the establishment of plantations in agricultural areas, which could in turn, change regional economic output. This study is an examination of the regional economic impacts of establishing woodlots for both timber production and carbon sequestration in an Australian agricultural region. Financial and spatial analyses are used to identify where this dual function forestry might be more profitable than current land use while input-output tables and direct expenditure projections are used to estimate regional impacts. Results suggest there will eventually be an increase in gross regional output if a sustainable timber production system was to be established. However there would be a decrease in output during the first plantation cycle despite the injection of emissions credit payments.

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