title: Real Options Analysis of Carbon Forestry Under the New Zealand Emissions Trading Scheme

authors: Tee, James Seng Khien

subjects: climate change

abstract: In 2008, the New Zealand government passed climate change legislation called the New Zealand Emissions Trading Scheme (NZETS), designed to create a carbon price in the economy. Under the NZETS, new forests planted on and after 1st January 1990 (known as post-1989 forests) are eligible to earn carbon credits and sell them domestically and internationally, with a condition that the credits will have to be repaid back upon harvest of the forests. The amount of credits that have to be surrendered is proportionate to the extent that carbon stocks decrease in the forest land. This research explores the effects of the NZETS on new post-1989 forests. The NPV/LEV and the Real Options valuation methods are respectively employed to analyze fixed harvest and flexible harvest forest management decisions. This approach is applied to study the cases of timber-only forestry (i.e. no NZETS) and carbon forestry (i.e. with NZETS). The major advance of this research is the development of a double Random Variable Real Options methodology that incorporates both stochastic timber and stochastic carbon prices into the calculation of the bareland forestry investment opportunity under the NZETS. Through the work of this thesis, it is shown that the NZETS increases the valuation of bareland on which radiata pine is to be planted with a single rotation or a perpetual series of rotations, especially for the case of flexible harvest forest management. The NZETS will very likely lengthen the rotation age of forests and increase forest carbon sequestration, which contributes positively towards climate change mitigation in New Zealand. The Real Options valuation method can generate optimal harvest price thresholds that help forest owners to decide when to harvest. This thesis concludes with a scenario analysis of potential implications of lengthening the forest rotation age on carbon stock management in New Zealand.

text: Real Options Analysis of Carbon Forestry Under the New Zealand Emissions Trading Scheme In 2008, the New Zealand government passed climate change legislation called the New Zealand Emissions Trading Scheme (NZETS), designed to create a carbon price in the economy. Under the NZETS, new forests planted on and after 1st January 1990 (known as post-1989 forests) are eligible to earn carbon credits and sell them domestically and internationally, with a condition that the credits will have to be repaid back upon harvest of the forests. The amount of credits that have to be surrendered is proportionate to the extent that carbon stocks decrease in the forest land. This research explores the effects of the NZETS on new post-1989 forests. The NPV/LEV and the Real Options valuation methods are respectively employed to analyze fixed harvest and flexible harvest forest management decisions. This approach is applied to study the cases of timber-only forestry (i.e. no NZETS) and carbon forestry (i.e. with NZETS). The major advance of this research is the development of a double Random Variable Real Options methodology that incorporates both stochastic timber and stochastic carbon prices into the calculation of the bareland forestry investment opportunity under the NZETS. Through the work of this thesis, it is shown that the NZETS increases the valuation of bareland on which radiata pine is to be planted with a single rotation or a perpetual series of rotations, especially for the case of flexible harvest forest management. The NZETS will very likely lengthen the rotation age of forests and increase forest carbon sequestration, which contributes positively towards climate change mitigation in New Zealand. The Real Options valuation method can generate optimal harvest price thresholds that help forest owners to decide when to harvest. This thesis concludes with a scenario analysis of potential implications of lengthening the forest rotation age on carbon stock management in New Zealand.

year: 2011

title: Water laws and the cultural values associated with rivers: Current frameworks and future directions.

authors: Campbell, Samuel

subjects: rivers

abstract: The world’s rivers are in ecological decline. They are the most threatened of all freshwater habitats, and threats to their ecological integrity are both increasing and compounding. Rivers are crucial for supporting biological diversity (being unusually biodiverse habitats) and are key to the function of the Earth system. Rivers are also critical for supporting people. They provide food, water for drinking and irrigation, and a significant proportion of the world’s energy. Additionally, people value rivers for their heritage, and the opportunities they provide for aesthetic appreciation and recreation. Rivers also form key components of cosmologies and spiritual practices, and indigenous ways of living and being. These ‘cultural’ values associated with rivers are the focus of this study.

Laws which govern the use and conservation of rivers are generally concerned with safeguarding the socio-economic benefits generated by their utilization. Heritage, aesthetic and recreation interests are recognized to a lesser extent. Each of these provides their own justifications for and approaches to the ecological conservation of rivers. However, the potential role of cultural values (spiritual and indigenous values) in improving ecological outcomes for rivers is underexplored. In this study, I examine the recognition of cultural values associated with rivers in water laws at the international, regional and domestic levels. I ask the question: would greater recognition and implementation of cultural values in water laws improve ecological outcomes for rivers?

I find that the cultural values associated with rivers are heterogeneous and highly context-specific. Their capacity to enhance ecological conservation of rivers is variable. However, some cultural values show real promise in their ability to improve ecological outcomes. I argue that these values should be recognized and implemented in water laws at the domestic, regional and international levels.

text: Water laws and the cultural values associated with rivers: Current frameworks and future directions. The world’s rivers are in ecological decline. They are the most threatened of all freshwater habitats, and threats to their ecological integrity are both increasing and compounding. Rivers are crucial for supporting biological diversity (being unusually biodiverse habitats) and are key to the function of the Earth system. Rivers are also critical for supporting people. They provide food, water for drinking and irrigation, and a significant proportion of the world’s energy. Additionally, people value rivers for their heritage, and the opportunities they provide for aesthetic appreciation and recreation. Rivers also form key components of cosmologies and spiritual practices, and indigenous ways of living and being. These ‘cultural’ values associated with rivers are the focus of this study.

Laws which govern the use and conservation of rivers are generally concerned with safeguarding the socio-economic benefits generated by their utilization. Heritage, aesthetic and recreation interests are recognized to a lesser extent. Each of these provides their own justifications for and approaches to the ecological conservation of rivers. However, the potential role of cultural values (spiritual and indigenous values) in improving ecological outcomes for rivers is underexplored. In this study, I examine the recognition of cultural values associated with rivers in water laws at the international, regional and domestic levels. I ask the question: would greater recognition and implementation of cultural values in water laws improve ecological outcomes for rivers?

I find that the cultural values associated with rivers are heterogeneous and highly context-specific. Their capacity to enhance ecological conservation of rivers is variable. However, some cultural values show real promise in their ability to improve ecological outcomes. I argue that these values should be recognized and implemented in water laws at the domestic, regional and international levels.

year: 2022

title: Bones | Iwi

authors: Apiata, Hāwea

abstract: Poetry written at Kāwhia featured in Issue 6 of The Quick Brown Dog Journal published by Hagley Writers' Institute, Christchurch, NZ.

text: Bones | Iwi Poetry written at Kāwhia featured in Issue 6 of The Quick Brown Dog Journal published by Hagley Writers' Institute, Christchurch, NZ.

year: 2024-03-08