The Viability of Creating Wetlands for the Sale of Carbon Offsets

Hansen, LeRoy T.; Larson, Douglas M.
August 2009
Journal of Agricultural & Resource Economics;Aug2009, Vol. 34 Issue 2, p350
Academic Journal
This analysis estimates the profitability of restoring wetlands for the sale of carbon off-sets. Results indicate that about 7% to 12% of the recently restored grassed wetlands of the prairie pothole and high plains regions and 20% to 35% of the forested wetlands of the Mississippi alluvial valley and Gulf-Atlantic coastal flats regions could have carbon offset values that exceed the cost of restoring the wetland and the opportunity cost of moving the land out of agricultural production. Given the uncertainties, the analysis applies conservative estimates of wetlands' costs, offset prices, and wetlands' effects on greenhouse gases.


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