Please use this identifier to cite or link to this item: https://hdl.handle.net/1959.11/333
Title: Transaction and abatement costs of carbon-sink projects in developing countries
Contributor(s): Cacho, OJ  (author)orcid ; Marshall, GR  (author); Milne, M (author)
Publication Date: 2005
Open Access: Yes
DOI: 10.1017/S1355770X05002056
Handle Link: https://hdl.handle.net/1959.11/333
Abstract: Projects in the forestry sector, and land-use change and forestry projects more generally, have the potential to help mitigate global warming by acting as sinks for greenhouse gasses, particularly CO2. However, concerns have been expressed that participation in carbon-sink projects may be constrained by high costs. This problem may be particularly severe for projects involving smallholders in developing countries. Of particular concern are the transaction costs incurred in developing projects, measuring, certifying, and selling the carbon-sequestration services generated by such projects. This paper addresses these issues by reviewing the implications of transaction and abatement costs in carbon-sequestration projects. An approach to estimating abatement costs is demonstrated through four case studies of agroforestry systems located in Sumatra, Indonesia. A typology of transaction costs is presented and related to existing pilot projects. The paper concludes with recommendations to reduce the disadvantages that smallholders may face in capturing the opportunities offered by carbon markets.
Publication Type: Journal Article
Source of Publication: Environment and Development Economics, 10(5), p. 597-614
Publisher: Cambridge University Press
Place of Publication: Cambridge
ISSN: 1355-770X
Field of Research (FOR): 140205 Environment and Resource Economics
Peer Reviewed: Yes
HERDC Category Description: C1 Refereed Article in a Scholarly Journal
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Appears in Collections:Journal Article
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