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The Viability of Creating Wetlands for the Sale of Carbon Offsets

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  • Hansen, LeRoy T.

Abstract

This analysis estimates the profitability of restoring wetlands for the sale of carbon offsets. Results indicate that about 7% to 12% of the recently restored grassed wetlands of the prairie pothole and high plains regions and 20% to 35% of the forested wetlands of the Mississippi alluvial valley and Gulf-Atlantic coastal flats regions could have carbon offset values that exceed the cost of restoring the wetland and the opportunity cost of moving the land out of agricultural production. Given the uncertainties, the analysis applies conservative estimates of wetlands’ costs, offset prices, and wetlands’ effects on greenhouse gases.

Suggested Citation

  • Hansen, LeRoy T., 2009. "The Viability of Creating Wetlands for the Sale of Carbon Offsets," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 34(2), pages 1-16, August.
    • Handle: RePEc:ags:jlaare:54551
    DOI: 10.22004/ag.econ.54551
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    References listed on IDEAS

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    1. Baer, Paul & Spash, Clive L., 2008. "Cost-benefit Analysis of Climate Change: Stern Revisited," MPRA Paper 101829, University Library of Munich, Germany.
    2. Stern,Nicholas, 2007. "The Economics of Climate Change," Cambridge Books, Cambridge University Press, number 9780521700801, October.
    3. William D. Nordhaus, 2007. "A Review of the Stern Review on the Economics of Climate Change," Journal of Economic Literature, American Economic Association, vol. 45(3), pages 686-702, September.
    4. Joseph Cooper & John Loomis, 1993. "Testing whether waterfowl hunting benefits increase with greater water deliveries to wetlands," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 3(6), pages 545-561, December.
    5. Ribaudo, Marc & Hansen, LeRoy T. & Hellerstein, Daniel & Greene, Catherine R., 2008. "The Use of Markets To Increase Private Investment in Environmental Stewardship," Economic Research Report 56473, United States Department of Agriculture, Economic Research Service.
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    Citations

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    Cited by:

    1. van Kooten, G. Cornelis & Withey, Patrick & Wong, Linda, 2011. "Climate Change Impacts on Waterfowl Habitat in Western Canada," Working Papers 107094, University of Victoria, Resource Economics and Policy.
    2. Aaron Laporte, 2014. "Effects of Crop Prices, Nuisance Costs, and Wetland Regulation on Saskatchewan NAWMP Implementation Goals," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 62(1), pages 47-67, March.
    3. Withey, Patrick & van Kooten, G. Cornelis, 2011. "The Effect of Climate Change on Wetlands and Waterfowl in Western Canada: Incorporating Cropping Decisions into a Bioeconomic Model," Working Papers 117437, University of Victoria, Resource Economics and Policy.
    4. Sergio Zamora & Luis Carlos Sandoval-Herazo & Gastón Ballut-Dajud & Oscar Andrés Del Ángel-Coronel & Erick Arturo Betanzo-Torres & José Luis Marín-Muñiz, 2020. "Carbon Fluxes and Stocks by Mexican Tropical Forested Wetland Soils: A Critical Review of Its Role for Climate Change Mitigation," IJERPH, MDPI, vol. 17(20), pages 1-13, October.
    5. G. Cornelis van Kooten & Patrick Withey & Linda Wong, 2011. "Bioeconomic Modeling of Wetlands and Waterfowl in Western Canada: Accounting for Amenity Values," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 59, pages 167-183, June.
    6. Gascoigne, William R. & Hoag, Dana & Koontz, Lynne & Tangen, Brian A. & Shaffer, Terry L. & Gleason, Robert A., 2011. "Valuing ecosystem and economic services across land-use scenarios in the Prairie Pothole Region of the Dakotas, USA," Ecological Economics, Elsevier, vol. 70(10), pages 1715-1725, August.
    7. Neuman, Amber D. & Belcher, Ken W., 2011. "The contribution of carbon-based payments to wetland conservation compensation on agricultural landscapes," Agricultural Systems, Elsevier, vol. 104(1), pages 75-81, January.
    8. Withey, Patrick & van Kooten, G. Cornelis, 2011. "The effect of climate change on optimal wetlands and waterfowl management in Western Canada," Ecological Economics, Elsevier, vol. 70(4), pages 798-805, February.
    9. ICF International, 2013. "Greenhouse Gas Mitigation Options and Costs for Agricultural Land and Animal Production within the United States," USDA Miscellaneous 339089, United States Department of Agriculture.
    10. Joungyoon Chun & Choong-Ki Kim & Wanmo Kang & Hyemin Park & Gieun Kim & Woo-Kyun Lee, 2019. "Sustainable Management of Carbon Sequestration Service in Areas with High Development Pressure: Considering Land Use Changes and Carbon Costs," Sustainability, MDPI, vol. 11(18), pages 1-20, September.
    11. Patton, Douglas & Bergstrom, John C. & Moore, Rebecca & Covich, Alan P., 2015. "Economic value of carbon storage in U.S. National Wildlife Refuge wetland ecosystems," Ecosystem Services, Elsevier, vol. 16(C), pages 94-104.
    12. Céline Huber & Luc Doyen & Sylvie Ferrari, 2021. "Profitability and conservation goals reconciled through biodiversity offsets," Bordeaux Economics Working Papers 2021-19, Bordeaux School of Economics (BSE).
    13. Gallant, Kirsten & Withey, Patrick & Risk, Dave & van Kooten, G. Cornelis & Spafford, Lynsay, 2020. "Measurement and economic valuation of carbon sequestration in Nova Scotian wetlands," Ecological Economics, Elsevier, vol. 171(C).

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