ABSTRACT

Economic analysis of forest carbon can be conducted for the purpose of accounting or assessment, using either a direct inventory-based or an indirect inventory-linked approach. Likewise, it can be conducted at highly aggregate international, national, and economy-wide levels, or at disaggregated sectoral, subnational and even local levels. The goal of this chapter is to review and synthesize the discussion of these issues, examining the strengths and weaknesses of alternative approaches, and suggesting directions of future inquiry. Examples from different parts of or the whole world illustrate this discussion. It concludes that while highly aggregate, market-based modeling efforts remain essential, more direct inventory-based, jurisdictional accounting and assessment at different levels of aggregation are called for in facilitating the implementation of the nationally determined contributions that the Parties have pledged as part of the Paris Agreement—or the even higher targets that they aspire to achieve.