Measuring the opportunity cost of carbon sequestration in tropical agriculture

The authors calculate rates of carbon sequestration from forestry and agroforestry systems in the tropics to derive measurements of the opportunity cost and suggest incentive-based payment schedules for carbon sequestration by small holder farmers. Using this method, they estimate total costs for carbon sequestration in the Manupali watershed in the Philippines, accounting for land quality and area factors in their measurements. They find that the marginal cost sequestering carbon sequestration through afforestation is between $3.30 and $62.50 per ton, with converting land to agroforestry accruing a lower opportunity cost than pure forestry.