This paper investigates the social efficiency of creating temporary certified emissions reductions to internalize the carbon sequestration function of the forest under the Clean Development Mechanism of the Kyoto Protocol. We find that the regulations governing the creation of temporary...

This paper examines the effect of the regulations under the Clean Development Mechanism (CDM) in creating temporary certified emission reductions (tCERs) on optimal harvesting decisions and supply of carbon removal services in forest plantations. The paper develops a theoretical model examining...