Measuring the opportunity cost of carbon sequestration in tropical agriculture

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Madison, Wisc.: University of Wisconsin Press


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.


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Carbon sequestration, Income generation, Environmental impacts, Tropical zones, Afforestation, Land use management, Soil quality, Modeling, Forestry, Economic modeling and analysis, Reforestation, Economic impacts, Agroforestry, Small holder enterprise, Agriculture, Manupali watershed, The Philippines, Greenhouse gases, Carbon dioxide (CO2), Fallow, Land conversion, Carbon storage, Biomass, Marginal cost, Opportunity costs, Paraserianthes falcataria, Kyoto Protocol, Clean Development Mechanism (CDM), Harvest value, Farm/Enterprise Scale Watershed


Land Economics 79(3): 342-354