@article{Galinato:197004,
      recid = {197004},
      author = {Galinato, Gregmar I. and Olanie, Aaron and Uchida,  Shinsuke and Yoder, Jonathan K.},
      title = {Long-term versus temporary certified emission reductions  in forest carbon sequestration programs},
      journal = {Australian Journal of Agricultural and Resource Economics},
      address = {2011},
      number = {428-2016-28038},
      pages = {23},
      year = {2011},
      abstract = {Under the Clean Development Mechanism (CDM) of the Kyoto  Protocol, forest
projects can receive returns for carbon  sequestration via two crediting instruments:
temporary or  long-term certified emission reductions (tCERs or lCERs).  This study
shows the effect of lCERs on the private owner’s  forest rotation intervals decision and
carbon credit  generation in afforestation and reforestation projects. A  credit verification
mechanism with a harvest penalty  implemented under the lCERs policy distorts
the timber  harvesting decision and the corresponding carbon credit  supply. Two
opposing incentives are created by the lCERs  mechanism which leads to either longer
or shorter rotations  compared to the Faustmann rotation, depending on which  incentive
prevails. Our numerical results show that both  lCERs and tCERs seem to have
similar impacts on harvesting  incentives, but the resulting carbon supply differs  among
the instruments owing to the credit verification  mechanism. The tCERs carbon supply
curve is monotonically  increasing in the carbon price, while a lCERs carbon supply  is
non-monotonic and may have a backward bending region  over a range of carbon
prices.},
      url = {http://ageconsearch.umn.edu/record/197004},
      doi = {https://doi.org/10.22004/ag.econ.197004},
}