Carbon sequestration in a tropical landscape : an economic model to measure its incremental cost

Farm level rates of carbon sequestration are derived for timber and agroforestry systems based on Paraserianthes falcataria. An economic model is used to measure the incremental cost of carbon storage, based on the opportunity cost of land diverted from annual crop production. The method is applied to the Manupali watershed, in the Philippine province of Bukidnon, to estimate carbon storage potential and carbon storage costs at a landscape scale. Carbon storage via land use modification is calculated to cost between $3.30 per ton on fallowed lands and $62.50 per ton on land that otherwise supports high value cropping. Carbon storage through agroforestry is less costly than via a pure tree-based system; a strong argument for the role of agroforestry rather than forestry per se, in re-forestation projects.