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Figure 2 Implementation, transaction and institutional costs (US$/ha/yr).
Building upon these findings, our work focuses on a practical bottom-up assessment of the full range of REDD+ costs, including opportunity, implementation, transaction and institutional costs for three Tanzanian REDD+ pilot projects (Jane Goodall Masito Ugalla Ecosystem Pilot Area (JGP); Tanzania Forest Conservation Group / Mjumita project (TFCG) - Kilosa site and Lindi site; Table 1).
For each pilot project, we developed a standardized "REDD+ cost elements" analytical excel-based tool to separately estimate the opportunity costs, implementation, transaction and institutional costs.
By estimating opportunity, implementation, transaction and institutional costs of REDD+ we develop a practical and replicable methodological framework to consistently assess REDD+ cost elements.
For the estimates of REDD+ cost elements on a per ha basis (US$/ha) we divided the annual average implementation, transaction and institutional costs of the pilot projects by the total project area.
Based on these estimates we divided the total implementation, transaction and institutional costs over a period of 30 years by the total projected GHG emissions reductions in the project scenario.
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Each of them implies a dramatically different information rent/efficiency trade-off due to domestic implementation and transaction costs.
For instance, in our implementation each transaction (i.e., each iteration of token announcement, token requests and token passing) took on average 25 ms. But this number could be much smaller using methods such as [37] that use collaborative communication for estimating neighborhood sizes that satisfy given predicates.
These implementation and transaction costs will be covered by the project development entities.
For the quantification of the implementation and transaction costs of the REDD+ pilot projects, we used available REDD+ project budgets.
Estimating the full range of REDD+ costs, including opportunity costs, implementation costs, transaction and institutional costs, must be complemented by the development and estimation of potential revenues to assess the potential effectiveness of REDD+ investments.
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