We explore the optimal time path of carbon sequestration and carbon abatement in stabilizing CO2 levels under uncertainty of climate impacts. Using a two-period sequential decision making model, we analytically derive optimal rates for the two control variables, abatement and sequestration...

We provide new cost estimates for carbon sequestration through afforestation in the U.S. We extend existing studies of carbon sequestration costs in several important ways, while ensuring the transparency of our approach. Our costs estimates have five distinguishing features: (1) we estimate...

Carbon offsets are a frequently discussed tool for reducing the costs of an emissions reduction policy. However, offsets have a basic problem stemming from asymmetric information. Sellers of offsets have private information about their opportunity costs, leading to concerns about whether offsets...