Advanced Search
MyIDEAS: Login to save this paper or follow this series

How Costly are Carbon Offsets? A Meta-Analysis of Forest Carbon Sinks

Contents:

Author Info

  • G. Cornelis van Kooten
  • Alison Eagle
  • James Manley
  • Tara Smolak

Abstract

Carbon terrestrial sinks are seen as a low-cost alternative to fuel switching and reduced fossil fuel use for lowering atmospheric CO2. As a result of agreements reached at Bonn and Marrakech, carbon offsets have taken on much greater importance in meeting Kyoto targets for the first commitment period. In this study, meta-regression analysis is used to examine 981 estimates from 55 studies of the costs of creating carbon offsets using forestry. Baseline estimates of costs of sequestering carbon through forest conservation are US$46.62–$260.29 per tC ($12.71–$70.99 per t CO2). Tree planting and agroforestry activities increase costs by more than 200%. When post-harvest storage of carbon in wood products, or substitution of biomass for fossil fuels in energy production, are taken into account, costs are lowest – some $12.53/tC to $68.44/tC ($3.42–$18.67/t CO2). Average costs are greater, between $116.76 and $1406.60/tC ($31.84–$383.62/t CO2), when appropriate account is taken of the opportunity costs of land. Peer review of the studies increases costs by a factor or 10 or more, depending on the model. The use of marginal cost estimates instead of average cost results in much higher costs for carbon sequestration, in the range of thousands of dollars per tC, although few studies used this method of cost assessment.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: https://web.uvic.ca/~repa/publications/REPA%20working%20papers/WorkingPaper2004-01.pdf
File Function: Final version, 2004
Download Restriction: no

Bibliographic Info

Paper provided by University of Victoria, Department of Economics, Resource Economics and Policy Analysis Research Group in its series Working Papers with number 2004-01.

as in new window
Length: 37 pages
Date of creation: 2004
Date of revision:
Handle: RePEc:rep:wpaper:2004-01

Contact details of provider:
Postal: P.O. Box 1700, STN CSC, Victoria, B.C., V8W 2Y2
Phone: (250) 721-8532
Fax: (250) 721-6214
Web page: http://web.uvic.ca/~repa/
More information through EDIRC

Related research

Keywords: climate change; Kyoto Protocol; meta-regression analysis; carbon-uptake costs; forest sinks;

Find related papers by JEL classification:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Buongiorno, Joseph & Zhu, Shushuai, 2013. "Consequences of carbon offset payments for the global forest sector," Journal of Forest Economics, Elsevier, vol. 19(4), pages 384-401.
  2. Marshall, Liz & Kelly, Alexia, 2010. "The Time Value of Carbon and Carbon Storage: Clarifying the terms and the policy implications of the debate," MPRA Paper 27326, University Library of Munich, Germany.
  3. Munnich Vass, Miriam & Elofsson, Katarina, 2013. "Is forest sequestration at the expense of bioenergy and forest products cost-effective in EU climate policy to 2050?," Working Paper Series 2013:9, Department Economics, Swedish University of Agricultural Sciences.
  4. G. Cornelis van Kooten, 2003. "Smoke and Mirrors: The Kyoto Protocol and Beyond," Working Papers 2003-04, University of Victoria, Department of Economics, Resource Economics and Policy Analysis Research Group.
  5. G. Cornelis van Kooten & Craig Johnston & Zhen Xu, 2012. "Economics of Forest Carbon Sequestration," Working Papers 2012-04, University of Victoria, Department of Economics, Resource Economics and Policy Analysis Research Group.
  6. Finnoff, David & Gong, Min & Tschirhart, John, 2012. "Perspectives on Ecosystem Based Management for Delivering Ecosystem Services with an Example from an Eighteen-Species Marine Model," International Review of Environmental and Resource Economics, now publishers, vol. 6(1), pages 79-118, January.
  7. Maria Nijnik & Guillaume Pajot, 2014. "Accounting for uncertainties and time preference in economic analysis of tackling climate change through forestry and selected policy implications for Scotland and Ukraine," Climatic Change, Springer, vol. 124(3), pages 677-690, June.
  8. Sabina Shaikh & Lili Sun & G. Cornelis van Kooten, 2005. "Are Agricultural Values a Reliable Guide in Determining Landowners’ Decisions to Create Carbon Forest Sinks?," Working Papers 2005-09, University of Victoria, Department of Economics, Resource Economics and Policy Analysis Research Group.
  9. Gren, Ing-Marie & Carlsson, Mattias, 2013. "Economic value of carbon sequestration in forests under multiple sources of uncertainty," Journal of Forest Economics, Elsevier, vol. 19(2), pages 174-189.
  10. Sebri, Maamar, 2014. "Use renewables to be cleaner: Meta-analysis of the renewable energy consumption-economic growth nexus," MPRA Paper 53247, University Library of Munich, Germany.
  11. Charles F. Mason & Andrew J. Plantinga, 2011. "Contracting for Impure Public Goods: Carbon Offsets and Additionality," Working Papers 2011.13, Fondazione Eni Enrico Mattei.
  12. Dang Phan, Thu-Ha & Brouwer, Roy & Davidson, Marc, 2014. "The economic costs of avoided deforestation in the developing world: A meta-analysis," Journal of Forest Economics, Elsevier, vol. 20(1), pages 1-16.
  13. Nicolas Mansuy & Sylvie Gauthier & Yves Bergeron, 2013. "Afforestation opportunities when stand productivity is driven by a high risk of natural disturbance: a review of the open lichen woodland in the eastern boreal forest of Canada," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 18(2), pages 245-264, February.
  14. Stavins, Robert & Plantinga, Andrew & Lubowski, Ruben, 2005. "Land-Use Change and Carbon Sinks," Discussion Papers dp-05-04, Resources For the Future.
  15. David Walker, 2014. "The Economic Potential for Forest-Based Carbon Sequestration under Different Emissions Targets and Accounting Schemes," Working Papers 2014.02, School of Economics, La Trobe University.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:rep:wpaper:2004-01. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (G.C. van Kooten).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.