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The Viability of Creating Wetlands for the Sale of Carbon Offsets

  • Hansen, LeRoy T.

This analysis estimates the profitability of restoring wetlands for the sale of carbon offsets. Results indicate that about 7% to 12% of the recently restored grassed wetlands of the prairie pothole and high plains regions and 20% to 35% of the forested wetlands of the Mississippi alluvial valley and Gulf-Atlantic coastal flats regions could have carbon offset values that exceed the cost of restoring the wetland and the opportunity cost of moving the land out of agricultural production. Given the uncertainties, the analysis applies conservative estimates of wetlands’ costs, offset prices, and wetlands’ effects on greenhouse gases.

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File URL: http://purl.umn.edu/54551
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Article provided by Western Agricultural Economics Association in its journal Journal of Agricultural and Resource Economics.

Volume (Year): 34 (2009)
Issue (Month): 2 (August)
Pages:

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Handle: RePEc:ags:jlaare:54551
Contact details of provider: Web page: http://waeaonline.org/

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  1. John Reilly & Kenneth Richards, 1993. "Climate change damage and the trace gas index issue," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 3(1), pages 41-61, February.
  2. Ribaudo, Marc & Hansen, LeRoy T. & Hellerstein, Daniel & Greene, Catherine R., 2008. "The Use of Markets To Increase Private Investment in Environmental Stewardship," Economic Research Report 56473, United States Department of Agriculture, Economic Research Service.
  3. Paul Baer & Clive L Spash, 2008. "Cost-Benefit Analysis of Climate Change: Stern Revisited," Socio-Economics and the Environment in Discussion (SEED) Working Paper Series 2008-07, CSIRO Sustainable Ecosystems.
  4. Joseph Cooper & John Loomis, 1993. "Testing whether waterfowl hunting benefits increase with greater water deliveries to wetlands," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 3(6), pages 545-561, December.
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