Optimal carbon sequestration path when different biological or physical sequestration

Noviembre 2010
Instituto de Políticas y Bienes Públicos (IPP) CSIC, Working Paper. 2010-18

Alejandro Caparrós & David Zilberman

We set out a general framework to discuss carbon sequestration programs when different alternatives are available and each of them yields sequestration benefits far into the future and at varying rates. We focus on reforestations, since trees grow for a long time, at varying rates, and different types of species yield completely different sequestration rates. We show that the Social Planner (and the landowner) will continuously change the species used for the reforestations and that the trend is to use slower and slower growing species as the land available for reforestations becomes scarcer and carbon builds up in the atmosphere.