Balderas Torres, A., R. Marchant, J.C. Lovett, J.C.R. Smart and R. Tipper
The objective of this paper is to analyze the sequestration costs of agroforestry afforestation and reforestation projects (ARPs) following a partial market equilibrium using average cost curves and economic break even analysis to identify the supply costs. The modelling done in this work contrasts the voluntary and clean development mechanism transaction costs. Data is based on the voluntary project, Scolel Te_, being implemented in Mexico. Cost curves are developed for seven different sequestration options considering transaction and implementation costs; information from agricultural production in Chiapas Mexico is used to integrate opportunity costs of two agroforestry practices suggesting that sequestration costs may follow a “U” shape, with an initial reduction due to economies of scale and a subsequent increase caused by high opportunity costs.