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Posted by: Michael Mandel on July 21
I’m going to be thinking more about the economics of climate change and the environment going forward. In that vein, I just saw an interesting post from Rob Stavins of the Kennedy School, summarizing the economics of carbon sequestration—that is, using forests as “biological scrubbers by removing (sequestering) CO2 from the atmosphere.”
The question is whether carbon sequestration makes economic and environmental sense. Rob reviews the evidence, including a 2005 paper that he co-authered.
A 500 million ton per year sequestration program would be very significant, offsetting approximately one-third of annual U.S. carbon emissions. At this level, the estimated costs of carbon sequestration are comparable to typical estimates of the costs of emissions abatement through fuel switching and energy efficiency improvements. This result indicates that sequestration opportunities ought to be included in the economic modeling of climate policies.
Michael Mandel, BW's award-winning chief economist, provides his unique perspective on the hot economic issues of the day. From globalization to the future of work to the ups and downs of the financial markets, Mandel-named 2006 economic journalist of the year by the World Leadership Forum-offers cutting edge analysis and commentary.