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Forest carbon sequestration supply function for African countries: An econometric modelling approach

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  • Adetoye, Ayoade Matthew
  • Okojie, Luke O.
  • Akerele, Dare

Abstract

Carbon sequestration cost function for developing nations particularly Africa plays a vital role in global climate change policy. Based on this, the study estimates carbon sequestration supply function for African countries. The study shows that majority of the selected countries have their cost of carbon sequestration estimated at $14pertonperha. Botswana and Congo DRC represent African countries with high cost of carbon sequestration with $16.75 and $16.77 respectively. Nigeria however, has her average cost of carbon sequestration as low as $6.82. The regression result shows that carbon sequestration supply (p<0.01), deforestation (p<0.01) and forest area (p<0.01) are the factors influencing cost of carbon sequestration among the sub-Saharan African countries. The overall marginal cost which is the cost per unit land area required to drive land use change towards carbon sequestration was estimated at $13.30 per ton/ha in Africa. Nigeria, Mali and Chad however, show a relatively low marginal cost of $7.0, $8.0 and $9.0 respectively. The study however suggests that positive land use characteristics should be encourage among countries in Africa, particularly in Nigeria with the least marginal cost of carbon sequestration. This will help in reducing cost of carbon sequestration and thereby lowering the global effect of climate change.

Suggested Citation

  • Adetoye, Ayoade Matthew & Okojie, Luke O. & Akerele, Dare, 2018. "Forest carbon sequestration supply function for African countries: An econometric modelling approach," Forest Policy and Economics, Elsevier, vol. 90(C), pages 59-66.
    • Handle: RePEc:eee:forpol:v:90:y:2018:i:c:p:59-66
    DOI: 10.1016/j.forpol.2018.01.007
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    References listed on IDEAS

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    1. Cho, Seong-Hoon & Lee, Juhee & Roberts, Roland & Yu, Edward T. & Armsworth, Paul R., 2018. "Impact of market conditions on the effectiveness of payments for forest-based carbon sequestration," Forest Policy and Economics, Elsevier, vol. 92(C), pages 33-42.
    2. Liu, Wan-Yu & Chiang, Yi-Hua & Lin, Chun-Cheng, 2022. "Adopting renewable energies to meet the carbon reduction target: Is forest carbon sequestration cheaper?," Energy, Elsevier, vol. 246(C).

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