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Potential Carbon Mitigation and Income in Developing Countries from Changes in Use and Management of Agricultural and Forest Lands

This paper is the result of the study examining the potential for carbon mitigation in developing countries.  It considers country-specific areas with potential for avoiding deforestation,  deforestation through assisted regeneration, and adoption of sustainable agricultural practices.

The analysis in this paper estimates that over the next ten years, forty-eight major tropical and subtropical developing countries could potentially reduce the atmospheric carbon burden by about 2.2 billion tonnes. Assuming a price of $10 per tonne of carbon and a discount rate of 3%, the authors suggest that this would generate a net present value of about $16.1 billion for these countries collectively. However, realising such potential would require substantially greater policy support and investment in sustainable land uses than is currently the case.

While somewhat technical, and weak on the sociological and institutional impacts of carbon projects, this paper provides a useful example of the calculations involved in estimating economic benefits of carbon sequestration projects.