Improving the Supply of Carbon Sequestration Services in Panama

Abstract

A global market for carbon sequestration services has emerged in recent years, driven both by regulations under the Kyoto Protocol and by private sector self-interests. However, the development of this market has been stymied by several factors, chief among them a tentative and dubious supply side. Land managers have been wary to enter the carbon market for three main reasons: high transaction and management costs, imperfect information, and a lack of institutional support. These factors have dissuaded potential suppliers from entering the market, even in the face of growing demand from governments and corporations looking to buy carbon sequestration services. As a nation with outstanding potential to capitalize on the global demand for carbon sequestration services, the Republic of Panama has much to gain from the maturation of a carbon market. In order to facilitate the growth of this market and stimulate the supply of carbon offset projects in Panama, policy mechanisms could be used by international, national, and local institutions to stimulate supply by providing financial, informational, and technical support to land managers. doi:10.1300/J091v25n01_03 44 Article copies available for a fee from The Haworth Document Delivery Service: 1-800-HAWORTH E-mail address: <http://docdelivery@haworthpress.com> Website: <http://www.Hyperlinkreferencenotvalid.> © 2007 by The Haworth Press, Inc. All rights reserved.]