[pp.21-28]
Hiroyasu SUGIHARA, Jun YAMASHITA and Yoriko IKOMA (Tokyo University of Agriculture and Technology / Kyushu University / Development Bank of Japan)
Abstract:
The Kyoto Protocol to the UNFCCC aims to stabilize greenhouse gases partially through forest carbon management. The present study addresses not only forest but also other terrestrial carbon like agricultural or wetland soil carbon. On the basis of the portfolio theory, the present study shows optimal combinations of the three carbon stocks (i.e. forest, agricultural and wetland carbon stocks) in Japan. This is because these stocks are regarded as types of investment goods in the financial portfolio. Results derived from an application of the portfolio theory indicated that suitable land use leads to an increase in the total amount of carbon stocks. It was, therefore, concluded that forest carbon management is important as a preventive measure against global warming, while wetlands conservation and regeneration should also considered as such.
Key Word:
Kyoto Protocol to the UNFCCC, carbon management, portfolio diversification, land use, wetlands conservation