Carbon Sequestration and Tree Plantations: A Case Study in Argentina

WithEduardo Ley, Roger A. Sedjo

This study undertakes two tasks. First, it estimates the carbon sequestering potential for two alternative tree plantations programs in two regions of Argentina, which have markedly different carbon sequestering potentials. While it estimates the physical volume of the carbon sequestered, unlike a host of other studies it does not try to estimate the costs of sequestration. Second, the study then develops a method for evaluating the comparative benefits of the carbon sequestered in the two cases based upon the price (value) of the external benefits, the growth of this price over time, and the discount rate. Estimates of the comparative benefits or value provide guidance as to the optimum comparative size of subsidies for the two regions.