Market opportunities for carbon sequestration in Alaska

Abstract

Global climate change has been at the forefront of environmental concerns for the last few decades. Based on the success of the United States' sulfur dioxide cap-and-trade program, a market for greenhouse gas emissions has slowly emerged. Russia's recent ratification of the Kyoto Protocol will bring an international market into force in February 2005. This thesis examines the economic theory behind cap-and-trade markets as solutions for environmental problems and discusses the characteristics of the markets for greenhouse gas emissions. The opportunities for Alaska's participation are examined, particularly offsetting diesel emissions from rural generators with wood or alternative energies. The calculations estimate that the rural diesel offset program could potentially earn 274,000 Verified Emissions Reductions annually, which the State of Alaska could sell to buyers to enhance its resource development revenue stream.