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An Econometric Analysis of the Costs of Sequestering Carbon in Forests

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  • Douglas J. Miller

Abstract

The Kyoto Protocol and the U.S. Climate Change Plan recognize afforestation as a potential means of reducing atmospheric CO 2 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 CO 2 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. Copyright 1999, Oxford University Press.

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  • Douglas J. Miller, 1999. "An Econometric Analysis of the Costs of Sequestering Carbon in Forests," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(4), pages 812-824.
    • Handle: RePEc:oup:ajagec:v:81:y:1999:i:4:p:812-824
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