Leslie Lipper (Agricultural and Development Economics Division, Food and Agriculture Organization) Romina Cavatassi (Agricultural and Development Economics Division, Food and Agriculture Organization)
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Land use change is a key requirement for improving rural incomes and making a significant reduction in poverty levels globally. Over 70% of the world’s poor are located in rural areas, with land use as a major source of subsistence. Improving the productivity of their land use systems is essential for increasing incomes and food security among them. Land use change is also a relatively low cost and rapidly implementable means of climate change mitigation. To the extent that the land use changes required for poverty alleviation coincide with that required for carbon sequestration, significant synergies can be harnessed in meeting both objectives. Estimates of predicted supply costs and demand prices indicate that several types of land use change appropriate for small and low income landusers will be a competitive source of emission reduction credits, although again there is considerable uncertainty in the final form of the market. However, even where there is significant potential for sequestration payments to contribute to poverty alleviation, considerable effort will be required to move from the objectives to the reality. In some cases this may be made through the structure of carbon sequestration payment programs, to address the investment and insurance needs of poor producers and provide adequate incentives for participation. In other cases larger institutional and policy reforms may be necessary in order to create the conditions necessary for poor landusers to benefit from carbon sequestration payments.
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Paper 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
03-13.
Length: 22 pages Date of creation: 2003 Date of revision: Handle: RePEc:fao:wpaper:0313
Contact details of provider: Postal: Agricultural Sector in Economic Development Service FAO Viale delle Terme di Caracalla 00153 Rome Italy Phone: +39(6) 57051 Fax: +39 06 57055522 Email: Web page: http://www.fao.org/es/esa/ More information through EDIRC
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Find related papers by JEL classification: Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets O0 - Economic Development, Technological Change, and Growth - - General O13 - Economic Development, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
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