Valuation of carbon sequestration of a Gmelina arborea (Roxb.) plantation in Concepcion 1, Sariaya, Quezon, Philippines
2000
Sharma, S.P.
The result of this study showed that the net carbon sequestration potential of a six-year-old plantation was 69.31 ton/ha equivalent to 254 ton carbon dioxide/ha. The year 2000 value of the establishment and management cost of a six-year-old plantation was P94,732 at 15% interest rate. The values of net carbon sequestration of a six-year-old plantation by opportunity cost and cost of damage avoided method amounted to P284,100 and P277,933 per ha, respectively. The net present value of net carbon sequestration using the opportunity cost method (P189,368) was higher than the cost of damage avoided method (P183,201/ha) at 15% interest rate. Based on the results of the study, the plantation of Gmelina arborea has potential benefits in offsetting emissions contributing to climate change and can be a good alternative investment strategy for carbon offset in the Philippines. A minimum price of US$102 per ton of carbon is recommended for future trading. Furthermore, it is recommended that future research should give more focus on the precise marginal value of future cost of damage by carbon dioxide and complete economic valuation of farm
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