Measuring the Opportunity Cost of Carbon Sequestration in Tropical Agriculture
We present a method for measuring the opportunity cost of sequestering carbon on tropical farms. We derive the rates of carbon sequestration for timber and agroforestry systems and compute incentive compatible compensating payment schedules for farmers who sequester carbon. The method is applied to data for an agricultural watershed in the Philippines. Area- and land quality-adjusted total costs are estimated. The present value of the opportunity cost of carbon storage via land modification falls between $3.30 and $62.50 per ton. Carbon storage through agroforestry is found to be less costly than via a pure tree-based system.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Peter J. Parks & Ian W. Hardie, 1995. "Least-Cost Forest Carbon Reserves: Cost-Effective Subsidies to Convert Marginal Agricultural Land to Forests," Land Economics, University of Wisconsin Press, vol. 71(1), pages 122-136.
- Darius M. Adams & Ralph J. Alig & DBruce A. McCarl & John M. Callaway & Steven M. Winnett, 1999. "Minimum Cost Strategies for Sequestering Carbon in Forests," Land Economics, University of Wisconsin Press, vol. 75(3), pages 360-374.
- Zeuli, Kimberly A. & Skees, Jerry R., 2000. "Will Southern Agriculture Play A Role In A Carbon Market?," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 32(02), August.
- Nissen, T. M. & Midmore, D. J. & Keeler, A. G., 2001. "Biophysical and economic tradeoffs of intercropping timber with food crops in the Philippine uplands," Agricultural Systems, Elsevier, vol. 67(1), pages 49-69, January.
- Robert N. Stavins, 1999. "The Costs of Carbon Sequestration: A Revealed-Preference Approach," American Economic Review, American Economic Association, vol. 89(4), pages 994-1009, September.
- S. Rama Chandra Reddy & Colin Price, 1999. "Carbon Sequestration and Conservation of Tropical Forests Under Uncertainty," Journal of Agricultural Economics, Wiley Blackwell, vol. 50(1), pages 17-35.
When requesting a correction, please mention this item's handle: RePEc:uwp:landec:v:79:y:2003:i:3:p:342-354. 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: ()
If references are entirely missing, you can add them using this form.