Time Path and Implementation of Carbon Sequestration (The)
We develop a dynamic model to investigate the optimal time paths of carbon emissions, sequestration, and the carbon stock. We show that carbon sinks should be utilized as early as possible, and carbon flow into sinks should last until the atmospheric carbon concentration is stabilized. We rule out any cyclical patterns of carbon sequestration and release. We propose and assess three mechanisms to efficiently introduce sequestration into a carbon permit trading market: a pay-as-you-go system, a variable-length-contract system and a carbon annuity account system. Although the three mechanisms may not be equally feasible to implement, they are all efficient.
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|Date of creation:||01 Feb 2002|
|Date of revision:|
|Publication status:||Published in American Journal of Agricultural Economics, February 2002, vol. 84 no. 1, pp. 134-149|
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Web page: http://www.econ.iastate.edu
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