Assessing carbon abatement costs considering forest carbon sequestration and carbon offset mechanism: Evidence from Taiwan
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Forest Science | March 22, 2023
The researchers from National Yang Ming Chiao Tung University in Taiwan have conducted a comprehensive study to investigate the potential implications of carbon taxes and carbon offset markets on the economy and the environment. With Taiwan's commitment to achieving carbon neutrality by 2050 and the passage of the Greenhouse Gas Reduction and Management Act in 2015, the country is likely to adopt measures such as carbon taxes and the establishment of carbon offset markets, aligning with international trends. Employing a carbon emission reduction cost prediction model, the study assessed the costs associated with reducing carbon emissions under different scenarios. These scenarios considered the presence or absence of a carbon offset market, with or without the inclusion of forest carbon sequestration as offsets. The researchers selected Taipei and Kaohsiung, representing regions with varying levels of carbon emissions, to analyze the benefits of carbon emissions trading and forest carbon sequestration. The findings revealed that the lowest costs for carbon emission reduction were observed when a carbon offset market existed, and forest carbon sequestration could be utilized as offsets. Conversely, the absence of a carbon offset market resulted in the highest costs. The study underscores the significance of strategic policies, such as the establishment of carbon offset markets and the utilization of forest carbon sequestration, to effectively combat climate change. However, it also cautions that relying solely on forest carbon sequestration is insufficient to achieve Taiwan's carbon neutrality target by 2050.