Project Report:
US Forest Carbon Pricing Initiative
- Investigates the causes of economic imbalances.
- Investigates causes tending to destroy or impair the free-market system.
- Explores and develops market-based solutions.


With funding from the Alex C. Walker Foundation in 2018, CSE will build on its successful program to address the climate impacts of industrial forestry through market-based solutions. Our work will continue in Oregon, but expand to address other states as well including Washington, California and select states in the southeast and northern US. Specific activities will include: (1) publishing high quality information about the impacts of industrial forestry on carbon emissions and climate resiliency; (2) designing and advocating for market based solutions such as cap and invest or forest carbon tax and reward to put a price on forest carbon and logging externalities; (3) building strong partnerships with conservation and climate communities in each key state to help advance these solutions and call public attention to the urgency of this issue, and (4) incubating a new business model – American Carbon Trust – to demonstrate the wide ranging benefits of climate smart forestry.


Climate change has been referred to as the most spectacular market failure ever. The market’s failure to incorporate the costs of climate change into prices of wood and paper products supports a tremendous level of over-production, over-consumption, and wasteful uses of these commodities.

Putting a price on high-emissions logging operations is a critical market-based solution for internalizing the catastrophic costs associated with climate change and rebalancing markets to support climate smart forestry.

With respect to forestlands, CSE has pioneered the world’s first-ever forest carbon tax and reward program concept, which is now being considered in Oregon by the Legislative Assembly. We also developed model language for folding the timber industry into the cap and trade framework, now operational or close to it in 20 states and provinces in North America.


The model legislation we developed is applicable to any region of the country or world where deforestation, forest degradation, and unsustainable forest practices are prevalent. In 2018, we will work with public officials and partners in Oregon and other US states to investigate the benefits of these approaches not only for climate but also for ancillary economic effects including jobs and ecosystem services.

Amount Approved
$50,000.00 on 8/1/2018 (Check sent: 8/27/2018)

1294 14th Street
West Linn, OR 97068

(503) 657-7336
(510) 384-5724
(503) 657-7336


Dr. John Talberth
President and Senior Economist, Center for Sustainable Economy

Posted 3/15/2018 5:42 PM
Updated   11/9/2018 10:36 AM

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