Working paper & third chapter of the dissertation by Daria Ageikina, supervised by Pierre Mérel, Jamie Hansen-Lewis, Michael Springborn
Abstract: The paper studies the interaction between wildfires and carbon sequestration programs by examining California's U.S. Forest Projects program, a subdivision of the Compliance Offset Program. The analysis reveals that forests enrolled in the program have higher risks of severe wildfires than comparable forests that are not enrolled. The design of the program likely attracts projects with a higher chance of losing sequestered carbon to wildfires, indicating adverse selection based on wildfire risks. These findings underscore the importance of accurately addressing wildfire risks in carbon sequestration programs.
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