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Fixed tax, increased tax rate 

Fixed tax, increased tax rate 

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This paper examines the dynamic interactions between forest biomass, atmospheric carbon, and land use change. Using a dynamic system model, these three factors are modeled as state equations while the policy maker decides the optimal timber harvesting and deforestation quantities. An extension of the model with a tax on forest products is included...

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... the tax and recycling mechanism scenario under an increased growth rate (↵ = 0.02) and Figure 11: Fixed tax, increased forest growth and productivity Figure 11a: Choice variables, c x , c z productivity (µ = 0.7) of forests yields the results seen in Figure 11. Forest biomass increases from 1,000 to the upper limit, 5,000 Gt C, and atmospheric CO 2 increases from 3,666 to 4,327.15 Gt. Land available for forests decreases from 40 hundred million hectares to just 0.08 hundred million hectares -the most significant amount of deforestation seen in the model. The choice variables, seen in Figure 11a, show the same behavior seen in Figure 3a: both converge towards 9, then as timber harvest decreases slightly (to a low of 3.35), deforestation increases to 20 for several steps, then sharply falls to end at 1.86. This extreme level of deforestation could be explained by the increased levels of both forest growth rates and forest productivity, as lower levels of forestable land would be needed for the same amount of atmospheric CO 2 mitigation. Decreasing forest growth from ↵ = 0.02 to ↵ = 0.008, yields the dynamics seen in Figure 12. Forest biomass increases from 1,000 to the upper limit of 5,000 Gt Carbon, while atmospheric carbon dioxide increases from 3,666 to 4,406.42 Gt. Land available to a↵orestation e↵orts decreases from 40 to 0.31 hundred million hectares. The behavior of the choice variables is displayed in Figure 12a. Varying the tax on timber harvest shows some interesting dynamics as well. Decreasing the tax from ⌧ 0 = 0.1 to ⌧ 1 = 0.01, yields results seen in Figure 13 and Figure 13a. With the decreased tax rate, forest biomass increases to 1128.04, a decrease of 120.6 Gt C relative to the scenario with the tax of 0.1. Atmospheric carbon increased to 4608.66, an increase of 4.49 Gt CO 2 as compared to the higher tax scenario. Available land decreases from 40 to 29.9, a slightly smaller decrease than in the higher tax rate scenario. The control variables demonstrate the behavior observed in Figure 13a; both timber harvest, (c x ), and deforestation, (c z ), begin at 9.2 Gt C. Timber harvest decreases to 9.14, while deforestation decreases to 9.15. Both control variables then decrease to 9.09 in the third period, where they remain for the rest of the simulation. Increasing the tax rate from ⌧ 0 = 0.1 to ⌧ 1 = 0.2 yields the dynamics seen in Figure 14 and Figure 14a. Forest biomass increases to 1398.37 Gt C -an increase of 149 Gt C from the initial ⌧ 0 = 0.1 tax scenario. Atmospheric carbon increases to 4598.62 Gt CO 2 , a decrease of 5 Gt CO 2 from the initial tax scenario. In other words, doubling the tax rate on timber harvest, yields a decrease of 5 Gt CO 2 over the course of the simulation. Land available for forests decreases to 31.04, a slightly smaller decrease than under the ⌧ 0 = 0.1 tax scenario. The control variables display equal behavior, seen in Figure 14a: both begin at 9.2, decrease to 9.15 in the second period, then to 9.09 in the third period, and decrease to 9.03 Gt C, where they remain for the rest of the ...
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... the tax and recycling mechanism scenario under an increased growth rate (↵ = 0.02) and Figure 11: Fixed tax, increased forest growth and productivity Figure 11a: Choice variables, c x , c z productivity (µ = 0.7) of forests yields the results seen in Figure 11. Forest biomass increases from 1,000 to the upper limit, 5,000 Gt C, and atmospheric CO 2 increases from 3,666 to 4,327.15 Gt. Land available for forests decreases from 40 hundred million hectares to just 0.08 hundred million hectares -the most significant amount of deforestation seen in the model. The choice variables, seen in Figure 11a, show the same behavior seen in Figure 3a: both converge towards 9, then as timber harvest decreases slightly (to a low of 3.35), deforestation increases to 20 for several steps, then sharply falls to end at 1.86. This extreme level of deforestation could be explained by the increased levels of both forest growth rates and forest productivity, as lower levels of forestable land would be needed for the same amount of atmospheric CO 2 mitigation. Decreasing forest growth from ↵ = 0.02 to ↵ = 0.008, yields the dynamics seen in Figure 12. Forest biomass increases from 1,000 to the upper limit of 5,000 Gt Carbon, while atmospheric carbon dioxide increases from 3,666 to 4,406.42 Gt. Land available to a↵orestation e↵orts decreases from 40 to 0.31 hundred million hectares. The behavior of the choice variables is displayed in Figure 12a. Varying the tax on timber harvest shows some interesting dynamics as well. Decreasing the tax from ⌧ 0 = 0.1 to ⌧ 1 = 0.01, yields results seen in Figure 13 and Figure 13a. With the decreased tax rate, forest biomass increases to 1128.04, a decrease of 120.6 Gt C relative to the scenario with the tax of 0.1. Atmospheric carbon increased to 4608.66, an increase of 4.49 Gt CO 2 as compared to the higher tax scenario. Available land decreases from 40 to 29.9, a slightly smaller decrease than in the higher tax rate scenario. The control variables demonstrate the behavior observed in Figure 13a; both timber harvest, (c x ), and deforestation, (c z ), begin at 9.2 Gt C. Timber harvest decreases to 9.14, while deforestation decreases to 9.15. Both control variables then decrease to 9.09 in the third period, where they remain for the rest of the simulation. Increasing the tax rate from ⌧ 0 = 0.1 to ⌧ 1 = 0.2 yields the dynamics seen in Figure 14 and Figure 14a. Forest biomass increases to 1398.37 Gt C -an increase of 149 Gt C from the initial ⌧ 0 = 0.1 tax scenario. Atmospheric carbon increases to 4598.62 Gt CO 2 , a decrease of 5 Gt CO 2 from the initial tax scenario. In other words, doubling the tax rate on timber harvest, yields a decrease of 5 Gt CO 2 over the course of the simulation. Land available for forests decreases to 31.04, a slightly smaller decrease than under the ⌧ 0 = 0.1 tax scenario. The control variables display equal behavior, seen in Figure 14a: both begin at 9.2, decrease to 9.15 in the second period, then to 9.09 in the third period, and decrease to 9.03 Gt C, where they remain for the rest of the ...

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