Under the Clean Development Mechanism (CDM) of the Kyoto Protocol, forest projects can receive returns for carbon sequestration via two credit instruments: temporary (tCERs) or long-term certified emission reductions (lCERs). This article develops a theoretical model of optimal harvesting...

Dynamic optimization problems with vintage or age class structures involve complexities that are not encountered in economic models with fewer state variables. These problems have been faced for centuries in forest harvesting decisions, and the earliest ideas for tackling them date from the...