Premium
The Time Path and Implementation of Carbon Sequestration
Author(s) -
Feng Hongli,
Zhao Jinhua,
Kling Catherine L.
Publication year - 2002
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.1093/ajae/84.1.134
Subject(s) - carbon sequestration , carbon sink , carbon fibers , natural resource economics , atmospheric carbon cycle , stock (firearms) , greenhouse gas , path dependent , environmental science , environmental economics , computer science , climate change , economics , carbon dioxide , chemistry , ecology , algorithm , engineering , organic chemistry , composite number , mechanical engineering , mathematical economics , biology
We develop a dynamic model to investigate the optimal time paths of carbon emissions, sequestration, and the carbon stock. We show that carbon sinks should be utilized as early as possible, and carbon flow into sinks should last until the atmospheric carbon concentration is stabilized. We rule out any cyclical patterns of carbon sequestration and release. We propose and assess three mechanisms to efficiently introduce sequestration into a carbon permit trading market: a pay‐as‐you‐go system, a variable‐length‐contract system and a carbon annuity account system. Although the three mechanisms may not be equally feasible to implement, they are all efficient.