TY - JOUR
T1 - Carbon sequestration in agricultural soils
T2 - Discounting for uncertainty
AU - Kurkalova, Lyubov A.
PY - 2005/12
Y1 - 2005/12
N2 - The study presents a conceptual model of an aggregator who selectively pays farmers for altering farming practices in exchange for carbon offsets that the change in practices generates. Under the assumption that the offsets are stochastic and that the aggregator maximizes the sum of the offsets from the purchase that he/she can rightfully claim with a specified level of confidence subject to a budget constraint, we investigate the optimal discounting of expected carbon offsets. We use the model to empirically estimate of the optimal discounting levels and costs for a hypothetical carbon purchasing project in the Upper Iowa River basin.
AB - The study presents a conceptual model of an aggregator who selectively pays farmers for altering farming practices in exchange for carbon offsets that the change in practices generates. Under the assumption that the offsets are stochastic and that the aggregator maximizes the sum of the offsets from the purchase that he/she can rightfully claim with a specified level of confidence subject to a budget constraint, we investigate the optimal discounting of expected carbon offsets. We use the model to empirically estimate of the optimal discounting levels and costs for a hypothetical carbon purchasing project in the Upper Iowa River basin.
UR - https://www.scopus.com/pages/publications/28444441628
U2 - 10.1111/j.1744-7976.2005.00025.x
DO - 10.1111/j.1744-7976.2005.00025.x
M3 - Article
SN - 0008-3976
VL - 53
SP - 375
EP - 384
JO - Canadian Journal of Agricultural Economics
JF - Canadian Journal of Agricultural Economics
IS - 4
ER -
