Analyzing economic viability of implementing Redd+ in India: Cost benefit approach
Bibhu Prasad Sahoo, Karman Kaur
SGTB Khalsa College, University of Delhi
Abstract
The paper seeks to find the economic viability of implementing REDD+, a voluntary market mechanism which involves incentivizing developing countries to stop deforestation and forest degradation in exchange of payment by the developed countries, to achieve their greenhouse gas concentration targets. The net revenues to the farmers from undertaking the REDD+ program and from the next best uses of forest land i.e. using the land for Rice plantation is calculated. It was found that REDD+ comes out to be the most profitable option for the farmers of Andhra Pradesh. The effect of uncertainty was also taken into account by doing a sensitivity analysis of the results. The fact that REDD+ still came out to be highly profitable ensures that the model is efficient and robust even in case of uncertainty.
REDD+, Andhra Pradesh, sensitivity analysis, rice plantation, opportunity costs
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This work is licensed under a Creative Commons Attribution-Non Commercial- 4.0 International License (CC BY- NC 4.0)
© ASEA
Received: 10.12.2016
Revised: 11.02.2017
Accepted: 18.04.2017
First Online: 15.06. 2017
Publisher Name: Action for Sustainable Efficacious Development and Awareness (ASEA)
Print : 0972-3099
Online :2278-5124