Abstract
Forestry has been proposed as a mean to reduce net greenhouse gas emissions, by either reducing sources or enhancing sinks. Under the Kyoto Protocol, Japan plans to use forest absorption, or sinks to achieve 3.9 percentage points of the 6% cut in greenhouse gases from the 1990 level. The Japan’s forestry productions, however, have reduced 60% in the last ten years. This paper studies the forestry for renewable energy policies, and quantifies the link between alternative renewable policies and the productivity of forestry in Japan.
In forestry production, a stylised fact known as a rotation effect considering dynamic aspect since it takes several decades to have forest production. This paper develops a dynamic data envelopment analysis (DEA) model of forest production that accounts for the rotation effect. The model is applied to data from a comprehensive perpetual or regional database in Japan to investigate the role of capital plays in observed productivity growth. Our empirical investigation shows that alternative forest management and renewable energy policies improve the efficiency of forest use as an energy source.
