# Carbon and Timber Management in Western Oregon under Tax-Financed Investments in Wildfire Risk Mitigation

**Published:** 2023-05-12  
**Categories:** Akateemiset julkaisut  
**URL:** https://www.etla.fi/julkaisut/akateemiset-julkaisut/carbon-and-timber-management-in-western-oregon-under-tax-financed-investments-in-wildfire-risk-mitigation/

#### Abstract

We examine how forest taxation should be designed when tax revenues are used to finance expenditures on wildfire risk mitigation and when forest carbon storage has value. A model is solved sequentially in two stages by a forest tax planner and a representative private landowner. Our results show that neither an acre-based fee nor a unit-based harvest tax is able to incentivize the same levels of sequestration as a carbon price. However, a neutral tax like the acre-based fee is preferred when the external benefits of carbon sequestration are captured by the private landowner.

*Journal of Agricultural and Resource Economics, Volume 48, Issue 2, May 2023, pp. 376-397.*

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## Additional Information

**Kirjoittajat:** Rossi, David - Kuusela, Olli-Pekka

**Publication Research:** No

**Kansikuva:** No

**Lataa Pdf:** No

**Key Words:** Distortionary taxes, Forest carbon offsets, Neutral taxes, Optimal forest taxation, Ramsey rule, Rotation age, Suppression expenditures

**Paivays:** 12.05.2023

**Sivuja:** 26

**Kieli:** en

**Sarja:** Other articles

https://doi.org/10.22004/ag.econ.320670

**Saatavuus:** 2

Journal of Agricultural and Resource Economics, Volume 48, Issue 2, May 2023