1. Carbon and livelihood outcomes from community forests are not necessarily correlated, meaning win-win, trade-off, and lose-lose scenarios are all possible depending on policy and context. 2. Larger community forest areas under community control and greater community autonomy in forest management are more likely to result in win-win outcomes for carbon sequestration and livelihoods. 3. When forest land is state-owned, communities overuse resources, but when land is community-owned, conservation is higher, indicating the need to compensate communities for reducing use of state forests.