Carbon sequestration through recommended forest management practices is an ecosystem service that helps mitigate climate change and its impacts while generating carbon credits for forestland owners to sell in cap-and-trade programs. The California’s cap-and-trade program (California’s carbon market hereafter) allows forestland owners from any part of the contiguous United States to supply carbon credits to compliance entities. In this study, we estimate South Carolina (SC) private forestland owners’ willingness to accept compensations to participate in the California’s carbon market using a contingent valuation method. We estimate forestland owners’ mean willingness to accept as $67 per acre per year. Our results reveal higher probability of participation of forestland owners with interests in preserving forest ecosystems than those who do not. Additionally, forestland owners who trust in information about climate change from scientists or government are willing to participate more than those who do not. Various factors hinder landowners’ ability to participate in carbon markets. Forestland owners in SC consider legislative uncertainty and long-time commitment as the main barriers to participation in California’s carbon market. From this research, average forestland tenure in SC is 27 years, which is far less than the 100-year time commitment of the California’s carbon market. Of those who agreed to participate, choosing between adopting and not adopting any of the three main forest management practices in the California’s carbon market: 28% are likely to adopt improved forest management (IFM) practices, 24% are likely to adopt reforestation due to understocked forestlands, and 14% are likely to adopt avoided conversion. In another development, the concept of aggregation has dominated discussions in the California’s carbon market of late. It is an advocacy to include small-scale forestlands in the California’s carbon market. To aggregate, different forestland owners will combine their forestlands to participate. We find that 79% of SC forestland owners are willing to aggregate to participate. However, this research is unable to determine how much total forestland is available in SC for carbon market. We recommend future research in the State on forestland owners’ participation in carbon market should consider evaluating forestland availability.

U.S. Geological Survey science supports groundwater resource management in the Mississippi Alluvial Plain region. The USGS Science and Decisions Center is working with the Water Availability and Use Science Program to integrate economics into a sophisticated model of groundwater in the region. The model will quantify the status of the groundwater system and help researchers, stakeholders, and decision-makers understand and manage groundwater resources. Including economics in the model will let users consider the influence of groundwater levels on regional economics and the effects of economic factors on the demand for groundwater....

Attracting forestland owners to participate in carbon markets can be challenging for several reasons including offset price volatility, legislative uncertainties, high costs of offset project development, long contract lengths, and landowners’ risk preferences. In this article, we elicit risk preferences and investigate Myopic Loss Aversion (MLA) of forestland owners using an economic experiment. The economic experiment is a betting game and we find that forestland owners exhibit MLA because they bet higher when returns from their investments are evaluated less frequently. Our results provide valuable information for developing carbon market protocols, especially in setting optimal evaluation periods of forest carbon offset projects.

The second U.S. Department of the Interior (DOI) Economics Training Workshop (hereafter “Workshop”) was held during September 25–27, 2018, in Washington, D.C., to identify, highlight, and better understand needs and opportunities for economic analysis to support DOI’s mission. Building on the first workshop in 2017, the second Workshop, jointly convened by the DOI Office of Policy Analysis and the U.S. Geological Survey (USGS) Science and Decisions Center, provided an opportunity for DOI economists to share expertise and experiences and to build collaboration and communication channels across DOI. In addition, the second Workshop provided training sessions on a variety of relevant economic and modeling topics. More than 40 DOI economists gathered at the Workshop to share their work, discuss shared challenges, and identify approaches to advance the use and contribution of economics at the DOI....