Carbon payments in the Guanzhong-Tianshui region to control land degradation

Abstract

Carbon trading and carbon offset markets are potential policy options for mitigating greenhouse gas emissions and climate change. A price on carbon is expected to generate demand for carbon offsets. In a market-based framework, the carbon price should be high enough to compensate for opportunity costs. We studied a highly-modified agricultural system in the Guanzhong- Tianshui economic region of China that is typical of many temperate agricultural zones in western China. We quantified the economic returns from agriculture and from carbon plantings (both monoculture and ecological plantings) under five carbon-price scenarios. The mean carbon sequestration is 34 Mg·hm-2·a-1, and the average annual payment increased to 1146 CNY·hm-2 at a medium carbon price of 50 CNY·Mg-1 CO2-e. Thus, areas of high priority for conservation and restoration may be restored relatively cheaply in the presence of a carbon market. Overall, however, less carbon is sequestered by ecological plantings (i.e., mixed native trees and shrubs) compared to agriculture.