IDEAS home Printed from https://ideas.repec.org/a/ags/jlaare/54551.html
   My bibliography  Save this article

The Viability of Creating Wetlands for the Sale of Carbon Offsets

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/54551/files/JARE_Aug09__08R_pp350-365.pdf
    Download Restriction: no

    File URL: https://libkey.io/10.22004/ag.econ.54551?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Baer, Paul & Spash, Clive L., 2008. "Cost-benefit Analysis of Climate Change: Stern Revisited," MPRA Paper 101829, University Library of Munich, Germany.
    2. 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.
    3. Stern,Nicholas, 2007. "The Economics of Climate Change," Cambridge Books, Cambridge University Press, number 9780521700801, January.
    4. 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.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. 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.
    2. 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.
    3. 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.
    4. G. Cornelis van Kooten & Patrick Withey & Linda Wong, 2011. "Climate Change Impacts on Waterfowl Habitat in Western Canada," Working Papers 2011-03, University of Victoria, Department of Economics, Resource Economics and Policy Analysis Research Group.
    5. 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.
    6. 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.
    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. 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.
    9. 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.
    10. 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).
    11. 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).
    12. 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.
    13. 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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Price, Colin, 2018. "Declining discount rate and the social cost of carbon: Forestry consequences," Journal of Forest Economics, Elsevier, vol. 31(C), pages 39-45.
    2. Stéphane Hallegatte, 2008. "A Proposal for a New Prescriptive Discounting Scheme: The Intergenerational Discount Rate," Working Papers 2008.47, Fondazione Eni Enrico Mattei.
    3. van den Bergh, J.C.J.M. & Botzen, W.J.W., 2015. "Monetary valuation of the social cost of CO2 emissions: A critical survey," Ecological Economics, Elsevier, vol. 114(C), pages 33-46.
    4. Pasquale Lucio Scandizzo, 2014. "The social rate of discount, climate change and real options," CEIS Research Paper 309, Tor Vergata University, CEIS, revised 18 Feb 2014.
    5. Mouez Fodha, 2015. "Nuclear waste storage and environmental intergenerational externalities," International Journal of Sustainable Development, Inderscience Enterprises Ltd, vol. 18(1/2), pages 94-114.
    6. Simon Dietz & Frederick van der Ploeg & Armon Rezai & Frank Venmans, 2021. "Are Economists Getting Climate Dynamics Right and Does It Matter?," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 8(5), pages 895-921.
    7. Li, Jun & Colombier, Michel & Giraud, Pierre-Noël, 2009. "Decision on optimal building energy efficiency standard in China--The case for Tianjin," Energy Policy, Elsevier, vol. 37(7), pages 2546-2559, July.
    8. Pycroft, Jonathan & Vergano, Lucia & Hope, Chris & Paci, Daniele & Ciscar, Juan Carlos, 2011. "A tale of tails: Uncertainty and the social cost of carbon dioxide," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 5, pages 1-29.
    9. Ingmar Schumacher, 2018. "The Aggregation Dilemma In Climate Change Policy Evaluation," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 9(03), pages 1-20, August.
    10. Min Gong & David Krantz & Elke Weber, 2014. "Why Chinese discount future financial and environmental gains but not losses more than Americans," Journal of Risk and Uncertainty, Springer, vol. 49(2), pages 103-124, October.
    11. Söderholm, Patrik & Pettersson, Fredrik, 2008. "Climate policy and the social cost of power generation: Impacts of the Swedish national emissions target," Energy Policy, Elsevier, vol. 36(11), pages 4154-4158, November.
    12. Garth Heutel, 2012. "How Should Environmental Policy Respond to Business Cycles? Optimal Policy under Persistent Productivity Shocks," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 15(2), pages 244-264, April.
    13. Christopher Robert & Richard Zeckhauser, 2011. "The methodology of normative policy analysis," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 30(3), pages 613-643, June.
    14. Arthur J. Robson & Larry Samuelson, 2009. "The Evolution of Time Preference with Aggregate Uncertainty," American Economic Review, American Economic Association, vol. 99(5), pages 1925-1953, December.
    15. Richard Tol, 2011. "Regulating knowledge monopolies: the case of the IPCC," Climatic Change, Springer, vol. 108(4), pages 827-839, October.
    16. Melissa Dell & Benjamin F. Jones & Benjamin A. Olken, 2014. "What Do We Learn from the Weather? The New Climate-Economy Literature," Journal of Economic Literature, American Economic Association, vol. 52(3), pages 740-798, September.
    17. Yamaguchi, Rintaro & Sato, Masayuki & Ueta, Kazuhiro, 2009. "Genuine savings with adjustment costs," MPRA Paper 16347, University Library of Munich, Germany.
    18. Moritz A. Drupp & Frikk Nesje & Robert C. Schmidt & Robert Christian Schmidt, 2022. "Pricing Carbon," CESifo Working Paper Series 9608, CESifo.
    19. repec:zbw:bofrdp:2013_024 is not listed on IDEAS
    20. Oikawa, Koki & Managi, Shunsuke, 2015. "R&D in clean technology: A project choice model with learning," Journal of Economic Behavior & Organization, Elsevier, vol. 117(C), pages 175-195.
    21. Gregory Casey, 2024. "Energy Efficiency and Directed Technical Change: Implications for Climate Change Mitigation," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 91(1), pages 192-228.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:jlaare:54551. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/waeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.