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Different CO₂exchange pathways were monitored for a year in short- and tall-formSpartina alternifloragrasses in a southeastern USA salt marsh at North Inlet, South Carolina. The tall form of grass growing close to a creek under favorable conditions reached a higher standing biomass than the short form of grass growing in the interior marsh. However, the photosynthetic parameters of both forms of grass were equivalent. The tall canopy had greater net canopy production, 973 versus 571 g C m⁻²year⁻¹, canopy growth, 700 versus 131 g C m⁻²year⁻¹, and canopy respiration, 792 versus 225 g C m⁻²year⁻¹, but lower sediment respiration, 251 versus 392 g C m⁻²year⁻¹. In a single growing season, tall-canopy biomass increased to intercept all the available solar radiation, which limits gross photosynthesis. Total respiration increased during the growing season in proportion to live biomass to a level that limited net production. Theoretically, the difference between net canopy production and canopy growth is carbon allocated to belowground growth and respiration. However, the computation of belowground production by this method was unrealistically low. This is important because carbon sequestration is proportional to belowground production and accounts for most of the vertical elevation gain of the marsh surface. Based on the allometry of standing live biomass, alternative estimates of belowground production were 927 and 193 g C m⁻²year⁻¹in creekbank and interior marshes, which would yield gains in surface elevation of 0.2 and 0.04 cm/year, respectively.