The potential of urban tree plantings to be cost effective in carbon credit markets

Emission trading is considered to be an economically sensitive method for reducing the concentrations of greenhouse gases, particularly carbon dioxide, in the atmosphere. There has been debate about the viability of using urban tree plantings in these markets. The main concern is whether or not urban planting projects can be cost effective options for investors. We compared the cost efficiency of four case studies located in Colorado, and used a model sensitivity analysis to determine what variables most influence cost effectiveness. We believe that some urban tree planting projects in specific locations may be cost effective investments. Our modeling results suggest that carbon assimilation rate, which is mainly a function of growing season length, has the largest influence on cost effectiveness, however resource managers can create more effective projects by minimizing costs, planting large-stature trees, and manipulating a host of other variables that affect energy usage.