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Title: Economics of Carbon Sequestration Projects Involving Smallholders
Contributor(s): Cacho, Oscar Jose (author)orcid 
Publication Date: 2009
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Abstract: Afforestation and reforestation projects have the potential to help mitigate global warming by acting as sinks for CO². However, 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 and measuring, certifying, and selling the carbon-sequestration services generated by such projects. This chapter addresses these issues by analyzing the implications of transaction and abatement costs in carbon-sequestration projects. A typology of transaction costs is presented, and estimates of the five cost types are derived based on a review of existing projects. The influences of project design on abatement costs and transaction costs are explored, and the critical values of a set of three project-design variables (farm price, number of participating farms, and minimum farm area) are identified for any given combination of transaction costs.
Publication Type: Book Chapter
Source of Publication: Payment for Environmental Services in Agricultural Landscapes: Economic policies and poverty reduction in developing countries, p. 77-102
Publisher: Springer
Place of Publication: New York, United States of America
ISBN: 9780387729718
Field of Research (FOR): 140205 Environment and Resource Economics
140201 Agricultural Economics
HERDC Category Description: B1 Chapter in a Scholarly Book
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Series Name: Natural resource management and policy
Series Number : 31
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