Uncertainty Discounting for Land-Based Carbon Sequestration
| dc.creator | Kim, Man-Keun | |
| dc.creator | McCarl, Bruce A. | |
| dc.date | 2017-04-01T17:07:56Z | |
| dc.date.accessioned | 2026-07-09T04:43:34Z | |
| dc.description | The effect of stochastic factors on soil carbon makes the quantity of carbon generated under a sequestration project uncertain. Hence, the quantity of sequestered carbon may need to be discounted to avoid liability from shortfalls. We present a potentially applicable uncertainty discount and discuss difficulties that might arise in empirical use. We insist that the variance in historical crop yields across geographical areas is used to derive a proxy variance for forming an uncertainty discount for carbon projects. Application of our approach suggests that project level uncertainty discounts would be 15–20% for the East Texas region. | |
| dc.identifier | doi:10.22004/ag.econ.48754 | |
| dc.identifier | https://ageconsearch.umn.edu/record/48754/files/jaae157.pdf | |
| dc.identifier | http://ageconsearch.umn.edu/record/48754 | |
| dc.identifier.uri | http://hdl.handle.net/123456789/554051 | |
| dc.language | eng | |
| dc.publisher | ||
| dc.source | http://ageconsearch.umn.edu/record/48754 | |
| dc.title | Uncertainty Discounting for Land-Based Carbon Sequestration | |
| dc.type | Text |