Emissions trading schemes are increasingly being
adopted to combat climate change. New Zealand created
the worlds first "all sectors all gases" such scheme
in 2008, awarding tradable credits for carbon
sequestration and imposing liabilities for emissions
(i.e. harvest or deforestation) from forestry. Adding
carbon pricing as a decision variable complicates
forest and forest land valuation, highlighting the
real options available to foresters (i.e. to defer
harvest or to change land use). Standard forest
valuation methodologies do not properly capture the
value impacts of carbon pricing on...