Journal Article

An Econometric Analysis of the Costs of Sequestering Carbon in Forests

Andrew J. Plantinga, Thomas Mauldin and Douglas J. Miller

in American Journal of Agricultural Economics

Published on behalf of Agricultural and Applied Economics Association

Volume 81, issue 4, pages 812-824
Published in print November 1999 | ISSN: 0002-9092
Published online November 1999 | e-ISSN: 1467-8276 | DOI: http://dx.doi.org/10.2307/1244326
An Econometric Analysis of the Costs of Sequestering Carbon in Forests

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The Kyoto Protocol and the U.S. Climate Change Plan recognize afforestation as a potential means of reducing atmospheric CO2 concentrations. To examine the cost-effectiveness of afforestation, we use econometric land use models to estimate the marginal costs of carbon sequestration in Maine, South Carolina, and Wisconsin. Our findings include the following: (a) earlier studies of afforestation programs tend to underestimate carbon sequestration costs, (b) afforestation still appears to be a relatively low-cost approach to reducing CO2 concentrations, (c) Wisconsin offers the lowest-cost opportunties for carbon sequestration, and (d) projected population changes have the largest effect on costs in South Carolina.

Keywords: afforestation; carbon; climate change; econometric models; land-use change; Q230; Q250

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Subjects: Renewable Resources and Conservation

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