Climate Change and Forest Rents in Senegal

Our study analyzes the asymmetrical effects of climate change on forest rent, focusing on short-term and long-term impacts. The results show that short-term effects are significant, while long-term effects are not. In the short term, variations in temperature and CO2 emissions affect forest income differently. An increase in temperature has a significant positive effect, stimulating forest growth, while a drop in temperature leads to a reduction in forest income. In addition, the expansion of agricultural land, often linked to deforestation, is associated with a decrease in forest rents in the short term, particularly in developing countries where agriculture plays a key role. However, population growth leads to a decrease in forest rents, as pressure on forest resources increases with population.