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Fig. 5
Parameters of the model_
| Fixed parameters | |||
|---|---|---|---|
| Parameter | Value | Description | Source |
| α | 0.3 | Exponent agriculture land in production function | Jointly determined to replicate late transition phase as reported in Hosonuma et al. 2012 |
| β | 0.7 | Exponent agriculture land in production function | |
| pa | 1.3 | Output price agriculture | |
| pf | 1 | Output price forestry | |
| γ | 0.25 | Exponent of state the state of the environment in externality function | Value selected to replicate forest cover along the different phases of forest transition as reported in Hosonuma et al. 2012 |
| Cmax | 1 | Maximum carbon stock (Normalized) | The values could not be derived from the literature directly. Nevertheless they are consistent with what can be found there |
| 1 | Land endowment (Normalized) | ||
| 1 | Labor endowment (Normalized) | ||
| k | 0.25 | Inflection point of Hill function | Assumption consistent with mathematical formulation |
| n | 1 | Steepness Hill functions | Assumption consistent with mathematical formulation |
| Random Parameters | |||
| s | N(0.5, 0.083) | Carbon share | Assumption consistent with mathematical formulation* |
| α | U(0.1 – 0.85) | Elasticity of substitution | Assumption consistent with mathematical formulation |
| d | U(0.1 – 0.5) | Degradation | Specht et al 2015 and Gerwing 2002 |
Average forest cover in 2010 per phase of forest transition process_
| Phase | Number of countries | Average forest cover (%) |
|---|---|---|
| Pre transition | 13 | 69.9 |
| Early transition | 39 | 46.6 |
| Late transition | 33 | 21.3 |
| Post transition | 15 | 27.3 |
Policy configurations_
| Policy/configuration | Ln quota* (%) | Compensation+ | Agr | For |
|---|---|---|---|---|
| Unregulated | 0 | No | - | - |
| Reserve | 7 | No | - | - |
| Compensation | 7 | Yes | - | - |
| Mitigation | 7 | No | Tax on C | - |
| Adaptation | 7 | No | - | Subcidy on H |
| Policy integration | 7 | No | Tax on C | Subcidy on H |
Variables calculated for the numerical solution of the model and their use_
| Economic subsectors | ||
|---|---|---|
| Variable | Description | Use |
| Πj | Profit | Not reported but known to be zero |
| Yj | Production | Calculate GDP |
| Lj | Land use | Model calibration |
| Tj | Labor use | Not reported |
| λj | Shadow price | Not reported |
| Factors Markets | ||
| w | Wage rate | Not reported |
| r | Opportunity cost of land | Calculate GDP (depending on policy configuration) |
| Ecologic sector | ||
| C | Carbon stock | Mitigation indicator |
| H | Hydrological services | Indirectly contained in GDP calculation |
| E | State of the environment | Calculate GDP |