Additionality Constrains Investment in Carbon Sequestration

Additionality Constrains Investment in Carbon Sequestration | Research Square window.SnipcartSettings = { analytics: { enabled: false } }; (function() { var accessVector = localStorage.getItem('access_vector') || ''; window.dataLayer = window.dataLayer || []; if (accessVector) { window.dataLayer.push({ user: { profile: { profileInfo: { snid: accessVector } } } }); } })(); (function(w,d,s,l,i){w[l]=w[l]||[];w[l].push({'gtm.start':new Date().getTime(),event:'gtm.js'});var f=d.getElementsByTagName(s)[0],j=d.createElement(s),dl=l!='dataLayer'?'&l='+l:'';j.async=true;j.src='https://www.googletagmanager.com/gtm.js?id='+i+dl;f.parentNode.insertBefore(j,f);})(window,document,'script','dataLayer','GTM-K279D39R'); Browse Preprints In Review Journals COVID-19 Preprints AJE Video Bytes Research Tools Research Promotion AJE Professional Editing AJE Rubriq About Preprint Platform In Review Editorial Policies Our Team Advisory Board Help Center Sign In Submit a Preprint Cite Share Download PDF Article Additionality Constrains Investment in Carbon Sequestration Stan Kannegieter, Kenneth B. Medlock This is a preprint; it has not been peer reviewed by a journal. https://doi.org/ 10.21203/rs.3.rs-7530152/v1 This work is licensed under a CC BY 4.0 License Status: Under Review Version 1 posted 13 You are reading this latest preprint version Abstract Additionality is a structural constraint that only recognizes land-based carbon sequestration if it would not have occurred without carbon payments. This discourages large-scale investment because it removes a significant portion of the potential carbon storage asset. Here we examine the effects of replacing the additionality requirement with a carbon asset class on soil organic carbon (SOC) sequestration on cropland. We construct and calibrate an economic model focused on crop and carbon farming in Texas. Our results indicate that eliminating the additionality constraint and monetizing the SOC pool can significantly increase investment in land management practices. Rather than regulating SOC sequestration through additionality, we propose the creation of a carbon asset class that rewards carbon accumulation resulting from all land management practices. We assume that conventional land management sequesters 12.67 Mg of carbon per hectare. Under a carbon offset price of $ 150 per Mg of CO₂ with the additionality constraint in place, crop farmers do not sequester any additional carbon by 2050. However, when additionality is replaced with a carbon asset class and farmers receive annuity payments based on their existing carbon stocks, they sequester an additional 41.48 Mg of carbon per hectare by 2050 – a 327.4% increase relative to the original carbon pool. The historically accumulated carbon becomes a source of revenue that incentivizes new investment. Earth and environmental sciences/Environmental sciences Earth and environmental sciences/Environmental social sciences Full Text Additional Declarations No competing interests reported. Cite Share Download PDF Status: Under Review Version 1 posted Editorial decision: Revision requested 02 Mar, 2026 Reviews received at journal 02 Mar, 2026 Reviewers agreed at journal 13 Feb, 2026 Reviewers agreed at journal 05 Jan, 2026 Reviewers agreed at journal 01 Dec, 2025 Reviews received at journal 20 Nov, 2025 Reviewers agreed at journal 28 Oct, 2025 Reviewers agreed at journal 10 Sep, 2025 Reviewers agreed at journal 08 Sep, 2025 Reviewers invited by journal 08 Sep, 2025 Editor assigned by journal 08 Sep, 2025 Submission checks completed at journal 04 Sep, 2025 First submitted to journal 03 Sep, 2025 You are reading this latest preprint version Research Square lets you share your work early, gain feedback from the community, and start making changes to your manuscript prior to peer review in a journal. As a division of Research Square Company, we’re committed to making research communication faster, fairer, and more useful. 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