As a result of the 1997 Kyoto Protocol, afforestation of agricultural lands
can be expected to take on an important role in the CO2 emissions reductio
n policy arsenal of some countries. To date, identification of suitable (ma
rginal) agricultural lands has been left mainly to foresters, but their cri
teria fail to take into account economic nuances. In this study, an optimal
control model is used to determine the optimal level afforestation in the
western Canada. The results indicate that, while planting fast-growing tree
s for carbon uptake on marginal agricultural land may be important, the pat
h dynamics matter in determining whether Canada can rely on afforestation t
o meet its obligations under Kyoto.