Carbon offsets as an economic alternative to large-scale logging: a case study in Guyana

The objective of this study is to analyze the economic viability of carbon-offset projects that avoid logging in Guyana's forests. The results of this case study illustrate the cost effectiveness of alternative land-use options that reduce deforestation and associated greenhouse gas (GHG) emissions. This analysis demonstrates that using Guyana's rainforests for climate change mitigation can generate equivalent revenue to that of conventional large-scale logging without detrimental environmental impacts. At a 12% discount rate, the break-even price for carbon is estimated to be about US$ 0.20/tC. This estimate falls toward the low range of carbon prices for existing carbon offset projects that avoid deforestation.