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The Dynamics Of Carbon Sequestration And Measures Of Cost-Effectiveness

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  • Feng, Hongli

Abstract

The cost-effectiveness of carbon sequestration alternatives has often been discussed in the economics literature on sequestration. Average or marginal costs and annual carbon supply curves are often used as measures of cost-effectiveness. Sequestration is inherently a temporal process and how time is accounted for in the various measures of cost-effectiveness is critical for appropriate cross-study comparisons. I examine three factors that affect the magnitude of measured cost-effectiveness: the study period, the sequestration path, and the discount rate if discounting is used. The extent to which these factors affect the consistency of cross-study comparisons is empirically illustrated.

Suggested Citation

  • Feng, Hongli, 2002. "The Dynamics Of Carbon Sequestration And Measures Of Cost-Effectiveness," Hebrew University of Jerusalem Archive 18451, Hebrew University of Jerusalem.
    • Handle: RePEc:ags:hebarc:18451
    DOI: 10.22004/ag.econ.18451
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    2. de Cara, Stephane & Rozakis, Stelios, 2004. "Carbon sequestration through the planting of multi-annual energy crops: A dynamic and spatial assessment," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 5(01), pages 1-17, January.
    3. de Cara, Stephane & Rozakis, Stelios, 2003. "Carbon sequestration in agricultural soils: A dynamic assessment," 2003 Annual meeting, July 27-30, Montreal, Canada 21913, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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