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Decision and Policy Analysis Research Area – DAPA

Opportunity Costs of Avoided Deforestation in Peru

The cover of the manual on estimating opportunity costs of REDD+

Chacaclayo, Peru
8 September 2011

The Peruvian Ministry of Environment, the German Cooperation Agency (GIZ) and World Agroforestry Center (ICRAF) brought together 53 professionals to Chacaclayo, Peru for a 3 and a half day workshop on opportunity costs of avoided deforestation. The participants included foresters (12), economists (9), biologists (7), environmental engineers (4), agronomists (3), geographers (3) and others (15). Focusing on methods for analyzing trade-offs between livelihoods and environment, the workshop used methods and protocols developed by the ASB Partnership for the Tropical Forest Margins over the last two decades.

Workshop participants focused on the 3 key analyses for deriving opportunity costs – land use change, carbon stocks and profitability. Experts on land use mapping, carbon stock mapping with LIDAR and deforestation modeling discussed tools and methods to improve estimates. Participants learned best practices for measuring biomass, which included a short field trip to demonstrate how the measurements are made in the field. Participants also learned how to budget costs and benefits at the farm-level. Participants met in groups to work through exercises on how to use all this information to construct cost abatement curves using ASB’s ABACUS software.

The workshop was funded by GIZ, NORAD and the Moore Foundation, with support from CIAT, CIFOR and Catholic University of Peru.

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