REDD Abacus SP

REDD Abacus SP 1.1 beta

Analyze the opportunity cost of land use changes in a landscape
1.1.4 (See all)
World Agroforestry Center

REDD Abacus SP is ABAtement Cost cUrveS generator from an opportunity cost estimation analysis on Reducing Emission from Deforestation, and Degradation.
Opportunity costs refer to the potential economic gains that could be made if certain types of land use change are not happening.

If the opportunity costs are low relative to the amount of emission reduction that can be achieved by avoiding this category of land use change, it may be of interest to stakeholders of emission reduction to offset the opportunity costs and make contracts that secure that the carbon remains stored. The difference in economic value ($/ha), per unit avoidable emission (tCO2e/ha) takes the dimensions of a price ($/tCO2e). If the economic value of emission reduction elsewhere (e.g. on a virtual ‘carbon market’) is higher than the opportunity costs of avoiding emissions in a certain landscape, it may be financially attractive for all parties to develop contracts that ensure local emission reduction. Several other elements of price (implementation and monitoring plus transaction costs) also play a role, but if opportunity costs are higher than going market prices, discussions of economic incentives for voluntary emission reduction will be a non-starter.Abatement Cost Curve

Opportunity cost curves indicate how much emission reduction might be feasible at what price. The basis for their constructing is [1] The differences in economic value ($/ha) and [2] Time-averaged C stock (t C/ha) of any type of [3] land use change. The land use change may have occurred (if the opportunity cost is a retrospective analysis of recent history) or is deemed plausible in a forward looking scenario of land use change.

REDD Abacus was developed to analyze the opportunity cost of land use changes in a landscape or area within a period of time and generate the abatement cost curve .

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