These models are applied to the various tropical regions separately, including Latin America. South and Central America have marginal costs similar to those for the rest of the globe, although the volume of carbon captured by avoided deforestation is a relatively large proportion: about three-eights of the total, depending upon the price.
Table 10: Estimates of the Costs of Protection for Latin America’s Biodiversity Estimate (year) Sedjo (1992) Chathamhouse (2007)
Percent Protected 10 percent of closed forest (67 million ha) area, e.g., hot spots
Cost $1.23 billion annually (rental)
James (2001)*
10–15 percent forest land
$3.5-5.5 billion annually (rental)
Brumer (2001)* Pearce (1996)
2 percent terrestrial area. 100 percent forest are Latin America Grieg-Gran (2006) 6.2 million ha/yr (1.5%) each year for indefinite period or an accumulation of about 1.5% of the global forest annually Kindermann et al. Reduce rate of deforestation (unpublished ) 10% to 50%
$5.8 billion annually $500 billion one time, or $25 billion annually discounted at 5%. $5 billion purchase payment and $25–$100 million each year for administration
Simpson et al. (1996)
Costs equal opportunity costs of the land at roughly $150–200/ha
100%
Cost is PV $4.0– $12.0 billion for the period through 2030; for a 10% reduction case PV of costs $17.2–$28.0 billion for the period through 2030 for the 50% reduction case
* Prorated from global estimates assuming Latin America has one-fifth of the area and costs.
Note that the first three studies focus on the costs of establishing permanent forest reserves adequate to protect core biodiversity. The Grieg-Gran (2006) study, by contrast, estimates the cost of halting all deforestation in high-incidence countries with targeted (purchased) compensation each year for several years and with continuing monitoring. This study assumes that the remainder of the forest will provide its values without compensation. The Kindermann et al. study focuses on the costs of undertaking substantial investments gradually to reduce the rate of deforestation compared to the 43