Transaction Costs for Carbon Sequestration Projects in the Tropical Forest Sector

T.R.H. Pearson, S. Brown, B. Sohngen, S. Ohrel and J. Henman. 2013. Transaction Costs for Carbon Sequestration Projects in the Tropical Forest Sector. Mitigation and Adaptation Strategies for Global Change. DOI 10.1007/s11027-013-9469-8

There is general consensus that carbon (C) sequestration projects in forests are a relatively low cost option for mitigating climate change, but most studies on the subject have assumed that transaction costs are negligible. The objectives of the study were to examine transaction costs for forest C sequestration projects and to determine the significance of the costs based on economic analyses. Here we examine four case studies of active C sequestration projects being implemented in tropical countries and developed for the C market.