Carbon Credit Payment Options for Agroforestry Projects in Africa
AbstractThe potential of using carbon offset credits from agroforestry projects for farmers in developing areas has become more prevalent in both Clean Development Mechanism and voluntary carbon markets. Since the implementation of the Kyoto Protocol, many international development organizations have been interested in using the Clean Development Mechanism (CDM) to help both mitigate CO2 emissions through agroforestry projects offsets and as a poverty reduction tool. Few organizations that have begun talking with farmers about planting trees for carbon offset credits have been able to tell the farmers how much money they would receive from their new tree growth or the costs they will incur in doing so. For this study, a whole farm budget toolkit was designed to help fill this gap and to help evaluate payment methods for carbon offset credits in agroforestry projects. This toolkit is intended to be used by development assistance organizations and farmers starting carbon credit programs. It gives a rough estimate of payments based on a farmer’s or group’s unique situation. For testing purposes, previous agroforestry projects were entered into the toolkit to evaluate the benefits accruing to farmers using data on carbon credit payment methods for two previous agroforestry projects in Africa. The toolkit was also field tested in Kenya with individual farmers and a farmers’ group.
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Bibliographic InfoPaper provided by Michigan State University, Department of Agricultural, Food, and Resource Economics in its series Graduate Research Masters Degree Plan B Papers with number 118497.
Date of creation: 2011
Date of revision:
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Postal: Justin S. Morrill Hall of Agriculture, 446 West Circle Dr., Rm 202, East Lansing, MI 48824-1039
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More information through EDIRC
agroforestry; budget toolkit; carbon credits; Clean Development Mechanism; payment methods; smallholder farmers; Agricultural Finance; Community/Rural/Urban Development; International Development; Land Economics/Use; O13; O22; R30; Q54;
Find related papers by JEL classification:
- O13 - Economic Development, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
- O22 - Economic Development, Technological Change, and Growth - - Development Planning and Policy - - - Project Analysis
- R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General
- Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters
This paper has been announced in the following NEP Reports:
- NEP-AGR-2011-12-19 (Agricultural Economics)
- NEP-ALL-2011-12-19 (All new papers)
- NEP-ENV-2011-12-19 (Environmental Economics)
- NEP-PPM-2011-12-19 (Project, Program & Portfolio Management)
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