Effects of carbon policies on disadvantaged forest communities in the United States

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Abstract Although forests play a vital role in US climate strategies, US forest area is expected to decline in the coming decades. Policymakers can help arrest or reverse that decline by strengthening incentives for forest carbon sequestration. Increased funding for afforestation, restoration, and bioenergy and wood products market development will likely benefit the forest sector unevenly across geographic, commercial, and demographic dimensions. This review explores the effects of policies – particularly incentives for afforestation and reforestation, carbon credit market participation, and wood products utilization – on US forest communities. We describe this policy landscape and use various data to investigate effects on diverse stakeholders, with special emphasis on the implications for disadvantaged and forest-dependent communities. Afforestation policies in the South-Central region could significantly enhance carbon dioxide removal while reshaping rural dynamics. Forest carbon credit markets, though crucial for climate goals, may disadvantage small forest owners and communities, instead favoring large corporate entities. Policies promoting wood products in the South-Central region could benefit forest-dependent, high-poverty communities. We also note how policy implementation might ensure an equitable distribution of climate-related benefits among stakeholders in the forest sector.

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