Cashing in on Carbon--Land and Offset Project Valuation: Incorporating Climate Legislation and Environmental Incentives in Property and Project Appraisal
Date
2010-04-30
Author
Advisors
Weinthal, Dr. Erika
Conrad, Dr. Robert
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Abstract
The CBO, EIA, and EPA predict carbon offset prices will rise to $15-30/ton CO2e in
the next decade (ACESA). The creation of carbon offsets markets provides landholders
with an alternative means of income generation on suitable tracts. Relevant businesses
might recognize what carbon and offset prices mean for their companies, but little
information exists for prospective suppliers of offsets like land owners, farmers,
land trusts, etc.
This project presents a customizable tool based on assumptions including but not limited
to offset price forecasts, expected sequestration rates, and tax data (State, Federal).
Users can tailor inputs like acreage availability, forest type, and start-up costs
to yield rough estimates of project and property value based on planting-for-carbon
initiatives. This paper demonstrates sample outputs produced by the model, conducts
sensitivity analyses to evaluate project variability, and runs financial forecasts
using Oracle’s Crystal Ball to predict outcome probabilities. It is important to note
that at the current stage, this tool predicts carbon sequestration and financial outcomes
for tree planting projects, not existing forest tracts.
Type
Master's projectPermalink
https://hdl.handle.net/10161/2211Citation
Davis, Nicholas J. (2010). Cashing in on Carbon--Land and Offset Project Valuation: Incorporating Climate Legislation
and Environmental Incentives in Property and Project Appraisal. Master's project, Duke University. Retrieved from https://hdl.handle.net/10161/2211.Collections
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