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Journal Article
Research Support, Non-U.S. Gov't
Mangrove and Freshwater Wetland Conservation Through Carbon Offsets: A Cost-Benefit Analysis for Establishing Environmental Policies.
Environmental Management 2017 Februrary
Mexico has extensive coastal wetlands (4,243,137 ha), and one of its most important sites is the Alvarado Lagoon System, located in the Papaloapan River Basin on the Gulf of Mexico. The land cover dedicated to livestock and sugarcane has increased: by 25 % in 2005 and 50 % in 2010, with a loss of wetland vegetation and the carbon that it stores. We found that the Net Present Value of mangrove carbon offsets profit is equal to $5822.71, that of broad-leaved marshes is $7958.86, cattail marshes $5250.33, and forested wetlands $8369.41 per hectare, during a 30-year-carbonoffset contract. However, the opportunity cost from conserving wetland instead of growing sugarcane is positive according to REDD+ methodology, e.g., broad-leaved marsh conservation ranged from $6.73 to $20 USD/t CO2e, that of cattail marshes from $12.20 to $32.65 USD/t CO2e, and forested wetlands from $7.15 to $20.60 USD/t CO2e, whereas the opportunity cost between conservation and livestock was negative, it means that conservation is more profitable. The cost-benefit analysis for assessing investment projects from a governmental perspective is useful to determine the viability of conserving coastal wetlands through carbon offset credits. It also shows why in some areas it is not possible to conserve ecosystems due to the opportunity cost of changing from one economic activity (livestock and sugarcane) to carbon offsets for protecting wetlands. Furthermore, it allows for a comparison of carbon markets and assessment in terms of REDD+ and its methods for determining the social cost per ton of carbon avoided.
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