The Dynamics of Deforestation and the Supply of Carbon Sequestration: Illustrative Results from Costa Rica
نویسندگان
چکیده
This chapter aims to contribute to the effective design of the rules that could allow lowcost carbon sequestration efforts in any number of tropical locations to replace high-cost emissions-reduction efforts in developed northern countries.2 The Clean Development Mechanism (CDM) of the Kyoto Protocol could potentially create such a market. This market could provide benefits for the tropical countries both directly, through profits from the sale of certified emissions credits (CERs), and indirectly, through side-benefits from forest protection, including biodiversity protection, watershed protection, and increased tourism potential. Creating the rules for such a market, however, involves considerable fixed costs. Participating in the market involves large costs on the part of the countries producing CERs. Can the market generate sufficient supply of CERs to justify the costs of its creation? What will the effect be of including tropical carbon sequestration on the global carbon price?
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