Smallholder Agroforestry Projects: Potential for carbon sequestration and poverty alleviation
AbstractThis paper provides an assessment of the potential for small-holder agro-forestry projects to be competitive in markets for carbon emission reduction credits, and explores the ways in which small-holder participation in such markets may be facilitated. The paper begins with an overview of the issue of global warming and the role of carbon sinks in mitigating climate change. Then an economic model of the carbon emission reduction (CER) market is presented, which includes the impact of transactions costs. An in-depth survey of the economic literature on transactions costs and their implications in the design of markets for CER follows. An assessment of the emission abatement and transaction costs likely to be associated with smallholder agro-forestry projects is presented, based on case study information from Latin America and Indonesia. The paper concludes with policy recommendations on how to design carbon sequestration projects to benefit small-holders and suggests institutional reforms which will be necessary for reducing the transactions costs associated with small-holder participation in the market. The paper also includes a detailed annex with information on carbon sequestration projects involving small-holders which are already under implementation.
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Bibliographic InfoPaper provided by Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA) in its series Working Papers with number 03-06.
Length: 81 pages
Date of creation: 2003
Date of revision:
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More information through EDIRC
Agroforestry; Carbon cycle; Carbon dioxide; Case studies; Costs; Development projects; Environmental policies; Environmental protection; Indonesia; Latin america; Poverty; Project design; Small farms; Carbon Sequestration;
Find related papers by JEL classification:
- O13 - Economic Development, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
- Q24 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Land
- O17 - Economic Development, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
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