Smallholder Agroforestry Projects: Potential for carbon sequestration and poverty alleviation
This paper provides an assessment of the potential for small-holder agro-forestry projects to be competitive in markets for carbon emission reduction credits, and explores the ways in which small-holder participation in such markets may be facilitated. The paper begins with an overview of the issue of global warming and the role of carbon sinks in mitigating climate change. Then an economic model of the carbon emission reduction (CER) market is presented, which includes the impact of transactions costs. An in-depth survey of the economic literature on transactions costs and their implications in the design of markets for CER follows. An assessment of the emission abatement and transaction costs likely to be associated with smallholder agro-forestry projects is presented, based on case study information from Latin America and Indonesia. The paper concludes with policy recommendations on how to design carbon sequestration projects to benefit small-holders and suggests institutional reforms which will be necessary for reducing the transactions costs associated with small-holder participation in the market. The paper also includes a detailed annex with information on carbon sequestration projects involving small-holders which are already under implementation.
|Date of creation:||2003|
|Date of revision:|
|Contact details of provider:|| Postal: Agricultural Sector in Economic Development Service FAO Viale delle Terme di Caracalla 00153 Rome Italy|
Phone: +39(6) 57051
Fax: +39 06 57055522
Web page: http://www.fao.org/es/esa/
More information through EDIRC
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.:
- Oliver E. Williamson, 2000. "The New Institutional Economics: Taking Stock, Looking Ahead," Journal of Economic Literature, American Economic Association, vol. 38(3), pages 595-613, September.
- Phil Simmons, 2002. "Overview of Smallholder Contract Farming in Developing Countries," Working Papers 02-04, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA).
- Cacho, Oscar J. & Hean, Robyn L. & Wise, Russell M., 2002.
"Carbon-Accounting Methods and Reforestation Incentives,"
2002 Conference (46th), February 13-15, 2002, Canberra
125067, Australian Agricultural and Resource Economics Society.
- Cacho, Oscar J. & Hean, Robyn L. & Wise, Russell M., 2003. "Carbon-accounting methods and reforestation incentives," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 47(2), June.
- Oscar J. Cacho & Robyn L. Hean & Russell M. Wise, 2003. "Carbon-accounting methods and reforestation incentives," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 47(2), pages 153-179, 06.
- Posner, Richard A, 1997. "Social Norms and the Law: An Economic Approach," American Economic Review, American Economic Association, vol. 87(2), pages 365-69, May.
- Michael Dutschke, Axel Michaelowa, 2000. "Climate cooperation as development policy: the case Of Costa Rica," International Journal of Sustainable Development, Inderscience Enterprises Ltd, vol. 3(1), pages 63-94.
- Posner, R.A. & Rasmusen, E., 1998.
"Creating and Enforcing Norms, with Special Reference to Sanctions,"
98-005, Indiana - Center for Econometric Model Research.
- Richard Posner & Eric Rasmusen, 1999. "Creating and Enforcing Norms, With Special Reference to Sanctions," Law and Economics 9907004, EconWPA.
- Philip Fearnside & Daniel Lashof & Pedro Moura-Costa, 2000. "Accounting for time in Mitigating Global Warming through land-use change and forestry," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 5(3), pages 239-270, September.
- Dahlman, Carl J, 1979. "The Problem of Externality," Journal of Law and Economics, University of Chicago Press, vol. 22(1), pages 141-62, April.
- Joyotee Smith, 2002. "Afforestation and reforestation in the clean development mechanism of the Kyoto Protocol: implications for forests and forest people," International Journal of Global Environmental Issues, Inderscience Enterprises Ltd, vol. 2(3/4), pages 322-343.
- Eggertsson,Thrainn, 1990. "Economic Behavior and Institutions," Cambridge Books, Cambridge University Press, number 9780521348911, December.
- Demsetz, Harold, 1969. "Information and Efficiency: Another Viewpoint," Journal of Law and Economics, University of Chicago Press, vol. 12(1), pages 1-22, April.
- Nee, Victor, 1998. "Norms and Networks in Economic and Organizational Performance," American Economic Review, American Economic Association, vol. 88(2), pages 85-89, May.
- Otsuka, Keijiro & Place, Frank, 2001. "Land tenure and natural resource management," Food policy statements 34, International Food Policy Research Institute (IFPRI).
- A. Allan Schmid, 1972. "Analytical Institutional Economics: Challenging Problems in the Economics of Resources for a New Environment," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 54(5), pages 893-901.
- Posner, Richard A. & Rasmusen, Eric B., 1999. "Creating and enforcing norms, with special reference to sanctions1," International Review of Law and Economics, Elsevier, vol. 19(3), pages 369-382, September.
- Brian E. Dollery & Joe L. Wallis, 1997. "Market Failure, Government Failure, Leadership and Public Policy," Journal of Interdisciplinary Economics, SAGE Publishing, vol. 8(2), pages 113-126, April.
- De Jong, Ben H. J. & Tipper, Richard & Montoya-Gomez, Guillermo, 2000. "An economic analysis of the potential for carbon sequestration by forests: evidence from southern Mexico," Ecological Economics, Elsevier, vol. 33(2), pages 313-327, May.
- Lecocq, Franck & Chomitz, Kenneth, 2001. "Optimal use of carbon sequestration in a global climate change strategy : is there a wooden bridge to a clean energy future ?," Policy Research Working Paper Series 2635, The World Bank.
- Daniel W. Bromley, 1997. "Rethinking Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(5), pages 1383-1393.
- Fehr, Ernst & Gachter, Simon, 1998. "Reciprocity and economics: The economic implications of Homo Reciprocans1," European Economic Review, Elsevier, vol. 42(3-5), pages 845-859, May.
- Cornes,Richard & Sandler,Todd, 1996. "The Theory of Externalities, Public Goods, and Club Goods," Cambridge Books, Cambridge University Press, number 9780521477185, December.
- Grist, P. & Menz, Kenneth M. & Thomas, 1998. "Modified BEAM Rubber Agroforestry Models: RRYIELD and RRECON," Technical Reports 113817, Australian Centre for International Agricultural Research.
When requesting a correction, please mention this item's handle: RePEc:fao:wpaper:0306. 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: (Gustavo Anríquez)
If references are entirely missing, you can add them using this form.