Fortmann, LeaCordero, PaulaSohngen, BrentRoe, Brian2014-04-102014-04-102014-04https://hdl.handle.net/10986/17712Implementation arrangements for Reducing Greenhouse Gas Emissions from Deforestation and Forest Degradation can be seen as contracts that could address some of the inherent problems with forest carbon credits that often lead to high transaction costs -- measuring, monitoring, and verification. Self-enforcing contracts, where it is in the best interest of the environmental service providers to comply with the contracts, may be one way to reduce these costs if providers have incentives to uphold their end of the contract. While the literature on Reducing Greenhouse Gas Emissions from Deforestation and Forest Degradation is extensive, there is little information available to guide policy makers or investors on what form such contracts should take. After providing an overview of the current status of Reducing Greenhouse Gas Emissions from Deforestation and Forest Degradation and its role as a tool for reducing carbon emissions on an international scale, the paper describes key issues regarding implementation and reviews the literature on contracts from the related area of Payments for Ecosystem Services programs, which face similar challenges. The remainder of the paper reviews various contractual mechanisms from agricultural and forestry related projects that have been proposed or are being used in practice and discusses the various implications associated with their design and implementation.en-USCC BY 3.0 IGOABATEMENTABATEMENT COSTSACCOUNTINGADVERSE SELECTIONAFFORESTATIONAFFORESTATION PROJECTSAGRICULTURAL COMMODITIESAGRICULTURAL PRODUCTIONAIRANNUAL CHANGEANNUAL COSTSASYMMETRIC INFORMATIONAUCTIONSBARREN LANDSBASELINE LEVELSBENEFICIARIESBIOMASSBUY BACKCAPACITY BUILDINGCAPSCARBON CREDITSCARBON DIOXIDECARBON DIOXIDE EMISSIONSCARBON EMISSIONSCARBON FINANCECARBON MARKETCARBON MARKETSCARBON MEASUREMENTCARBON OFFSETCARBON OFFSETSCARBON PRICECARBON PRICESCARBON SEQUESTRATIONCARBON STOCKSCARBON STORAGECARBON TRADINGCASH PAYMENTSCERTIFIED EMISSION REDUCTIONSCHECKSCLEAN DEVELOPMENT MECHANISMCLIMATECLIMATE CHANGECLIMATE CHANGE MITIGATIONCLIMATE POLICYCOCO2CONDITIONALITYCONSERVATION RESERVE PROGRAMCONTRACT DESIGNCOST ESTIMATESCREDIT SALESDEFORESTATION RATESDEGRADED LANDDEGREE OF RISKDEVELOPED COUNTRIESDEVELOPING COUNTRIESDEVELOPING COUNTRYDEVELOPMENT ECONOMICSDISCOUNT RATEDISCOUNT RATESDRIVERS OF DEFORESTATIONDROUGHTECOLOGICAL ECONOMICSECOLOGYECONOMIC CONDITIONSECONOMIC MODELSECONOMIC RISKSECONOMICSECONOMIES OF SCALEECOSYSTEMEFFICIENCY GAINSELECTRIC POWEREMISSION CAPEMISSION LEVELSEMISSION REDUCTIONSEMISSIONS FROM DEFORESTATIONEMISSIONS LEVELSEMISSIONS REDUCTIONENERGY SOURCESENFORCEABILITYENFORCEMENT SYSTEMSENVIRONMENTALENVIRONMENTAL BENEFITSENVIRONMENTAL DAMAGESENVIRONMENTAL ECONOMICSENVIRONMENTAL GOODSENVIRONMENTAL PROTECTIONENVIRONMENTSEROSION CONTROLEXPENDITUREEXPENDITURESEXTERNALITIESFINANCIAL INCENTIVESFINANCIAL SUPPORTFIRE MANAGEMENTFIXED COSTSFORESTFOREST AREAFOREST AREASFOREST CARBONFOREST CARBON SEQUESTRATIONFOREST CARBON STORAGEFOREST COMMUNITIESFOREST CONSERVATIONFOREST CONVERSIONFOREST DEGRADATIONFOREST FIREFOREST FIRESFOREST INVENTORIESFOREST INVENTORYFOREST LANDFOREST MANAGEMENTFOREST MANAGEMENT ACTIVITIESFOREST OFFSETFOREST PROJECTFOREST PROJECTSFOREST PROTECTIONFOREST RESOURCESFOREST SERVICEFOREST SYSTEMSFORESTRYFORESTRY ACTIVITIESFORESTRY PROJECTSFORESTRY SECTORFORESTSFOSSIL FUELFOSSIL FUEL EMISSIONFRAMEWORK CONVENTION ON CLIMATE CHANGEGHGGHGSGLOBAL EMISSIONSGLOBAL GREENHOUSE GASGREENHOUSEGREENHOUSE GASGREENHOUSE GAS EMISSIONSHOLDINGIMPERFECT INFORMATIONINCOMEINFRASTRUCTURE DEVELOPMENTINSURANCEINTEREST RATEINTERNATIONAL BANKINTERNATIONAL MARKETINTERNATIONAL MARKETSINVESTINGIPCCLAKESLAND HOLDINGSLAND MANAGEMENTLAND USELAND-USE CHANGELANDHOLDERLANDHOLDERSLANDOWNERLANDOWNERSLEGAL SYSTEMSLEVEL OF RISKLIABILITYLOANLOCAL GOVERNMENTLOCAL GOVERNMENTSLOGGINGLOWER COSTSLOWER PRICESMARGINAL COSTMARGINAL COSTSMARKET PRICEMARKET PRICESMARKET TRANSACTIONSMETHANEMODEL CONTRACTSMONETARY BENEFITSMORAL HAZARDNATIONAL EMISSIONSOFFSET PRICEOFFSET PROJECTSOPPORTUNITY COSTOPPORTUNITY COSTSOPTIMAL CONTRACTOPTIMAL CONTRACTSORIGINAL CONTRACTPARTICIPATION CONSTRAINTSPENALTIESPERFECT INFORMATIONPLEDGESPOLICY MAKERSPOPULATION PRESSURESPORTFOLIOPORTFOLIOSPPPRIVATE ENFORCEMENTPRIVATE INFORMATIONPROPERTY RIGHTSREDUCING EMISSIONSREPAYMENTREPAYMENTSRESERVERESERVESRESOURCE ECONOMICSRETURNRURAL COMMUNITIESSCENARIOSSET ASIDESOCIAL CAPITALSOIL CARBONSTORMSSTREAMSSUPPLY SIDESUSTAINABLE DEVELOPMENTSUSTAINABLE FORESTSUSTAINABLE FOREST MANAGEMENTTIMBERTOTAL COSTSTOTAL EMISSIONSTOTAL EMISSIONS REDUCTIONSTRADE SYSTEMTRADEOFFSTRANSACTIONTRANSACTION COSTSTRANSACTIONS COSTSTRANSPARENCYTROPICAL FORESTTROPICAL FOREST REGIONSTROPICAL FORESTSTRUST FUNDUNCERTAINTIESUNEPVARIABLE COSTSWATER QUALITYWINDWITHDRAWAL10.1596/1813-9450-6829