POTENTIAL TO SEQUESTER CARBON IN CANADIAN FORESTS - SOME ECONOMIC-CONSIDERATIONS

This paper examines the potential role of reforestation policies in reducing Canada's contribution to atmospheric CO2. The results indicate sequestering carbon by reforestation of forestlands may be a cost-effective means for Canada to offset domestic emissions of CO2 from other sources, and that planting forests on marginal agricultural lands also warrants consideration. But these policies need to be compared with alternatives for reducing CO2 emissions to determine their relative cost effectiveness. We find that reforestation is more costly than policies to increase the fuel efficiency of automobiles, but economically more efficient than converting vehicles to natural gas. Finally, we demonstrate that, because of its vast forests, Canada is a net carbon sink.