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Voluntary carbon trading: potential for community forestry projects in India

Author

Listed:
  • Rohit Jindal

    () (Department of Community, Agriculture, Recreation, and Resource Studies, Michigan State University, United States)

  • John Kerr

    (Department of Community, Agriculture, Recreation, and Resource Studies, Michigan State University)

  • Shailesh Nagar

    (Freelance consultant based in New Delhi)

Abstract

Voluntary carbon markets, such as the Chicago Climate Exchange (CCX), were worth $90 million in 2006. This paper finds that community forestry interventions of three organizations in India are eligible to sell carbon sequestration credits on CCX. Their combined annual sequestration potential is 104,427 tons of carbon dioxide (tCO2), worth $417,708 at 2007 prices. Although this value will be difficult to realize immediately, it indicates the potential for carbon sequestration to raise rural incomes in India. These benefits can be actualized by first linking small pilot projects with CCX and then scaling up operations. Projects will also need to reduce transaction costs to raise the shares of carbon revenue that farmers receive. The diversion of land to raise tree crops needs to be balanced with food security concerns. A potentially viable approach would be to take up carbon plantations on common lands with concerned agencies acting as a liaison between farmer groups and the market.

Suggested Citation

  • Rohit Jindal & John Kerr & Shailesh Nagar, 2007. "Voluntary carbon trading: potential for community forestry projects in India," Asia-Pacific Development Journal, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), vol. 14(2), pages 107-126, December.
  • Handle: RePEc:unt:jnapdj:v:14:y:2007:i:2:p:107-126
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    File URL: http://www.unescap.org/sites/default/files/apdj-14-2-5-JindalKerrNagar.pdf
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    References listed on IDEAS

    as
    1. Krey, Matthias, 2004. "Transaction costs of CDM projects in India: An empirical survey," HWWA Reports 238, Hamburg Institute of International Economics (HWWA).
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    Cited by:

    1. Jindal, Rohit & Kerr, John M. & Carter, Sarah, 2012. "Reducing Poverty Through Carbon Forestry? Impacts of the N’hambita Community Carbon Project in Mozambique," World Development, Elsevier, vol. 40(10), pages 2123-2135.
    2. Ashish Aggarwal, 2014. "How sustainable are forestry clean development mechanism projects?—A review of the selected projects from India," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 19(1), pages 73-91, January.

    More about this item

    Keywords

    India; CDM; Carbon markets; Community forestry; Chicago; Climate Exchange;

    JEL classification:

    • Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics

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