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Optimal carbon sequestration path when different biological or physical sequestration

  • Alejandro Caparrós
  • David Zilberman

We set out a general framework to discuss carbon sequestration programs when different alternatives are available and each of them yields sequestration benefits far into the future and at varying rates. We focus on reforestations, since trees grow for a long time, at varying rates, and different types of species yield completely different sequestration rates. We show that the Social Planner (and the landowner) will continuously change the species used for the reforestations and that the trend is to use slower and slower growing species as the land available for reforestations becomes scarcer and carbon builds up in the atmosphere.

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File URL: http://investigacion.cchs.csic.es/RePEc/ipp/wpaper/18_Caparros_Zilberman.pdf
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Paper provided by Instituto de Políticas y Bienes Públicos (IPP), CSIC in its series Working Papers with number 1018.

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Date of creation: Nov 2010
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Handle: RePEc:ipp:wpaper:1018
Contact details of provider: Web page: http://www.ipp.csic.es/

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  1. 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.
  2. Lionel Ragot & Katheline Schubert, 2008. "The optimal carbon sequestration in agricultural soils: Do the dynamics of the physical process matter?," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00308806, HAL.
  3. Brent Sohngen & Robert Mendelsohn, 2003. "An Optimal Control Model of Forest Carbon Sequestration," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(2), pages 448-457.
  4. Massimo Tavoni & Valentina Bosetti & Brent Sohngen, 2007. "Forestry and the Carbon Market Response to Stabilize Climate," Working Papers 2007.15, Fondazione Eni Enrico Mattei.
  5. Olschewski, Roland & Benitez, Pablo C., 2005. "Secondary forests as temporary carbon sinks? The economic impact of accounting methods on reforestation projects in the tropics," Ecological Economics, Elsevier, vol. 55(3), pages 380-394, November.
  6. Lubowski, Ruben & Plantinga, Andrew & Stavins, Robert, 2005. "Land-Use Change and Carbon Sinks: Econometric Estimation of the Carbon Sequestration Supply Function," Working Paper Series rwp05-001, Harvard University, John F. Kennedy School of Government.
  7. Schmalensee, Richard, 1979. "Market Structure, Durability, and Quality: A Selective Survey," Economic Inquiry, Western Economic Association International, vol. 17(2), pages 177-96, April.
  8. Muller, Eitan & Peles, Yoram C., 1990. "Optimal dynamic durability," Journal of Economic Dynamics and Control, Elsevier, vol. 14(3-4), pages 709-719, October.
  9. G. Cornelis Kooten, 2000. "Economic Dynamics of Tree Planting for Carbon Uptake on Marginal Agricultural Lands," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 48(1), pages 51-65, 03.
  10. Caparros, Alejandro & Jacquemont, Frederic, 2003. "Conflicts between biodiversity and carbon sequestration programs: economic and legal implications," Ecological Economics, Elsevier, vol. 46(1), pages 143-157, August.
  11. Feng, Hongli & Zhao, Jinhua & Kling, Catherine L., 2002. "Time Path and Implementation of Carbon Sequestration (The)," Staff General Research Papers Archive 5068, Iowa State University, Department of Economics.
  12. Xabadia, Angels & Goetz, Renan U. & Zilberman, David, 2006. "Control of accumulating stock pollution by heterogeneous producers," Journal of Economic Dynamics and Control, Elsevier, vol. 30(7), pages 1105-1130, July.
  13. Salo, Seppo & Tahvonen, Olli, 2002. "On Equilibrium Cycles and Normal Forests in Optimal Harvesting of Tree Vintages," Journal of Environmental Economics and Management, Elsevier, vol. 44(1), pages 1-22, July.
  14. Duarte, Clara Costa & Sa, Maria A. Cunha e, 2006. "Forest vintages and carbon sequestration," FEUNL Working Paper Series wp482, Universidade Nova de Lisboa, Faculdade de Economia.
  15. M. I. Kamien & E. Muller, 1976. "Optimal Control with Integral State Equations," Review of Economic Studies, Oxford University Press, vol. 43(3), pages 469-473.
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