In this paper I give an explicit conformal field theory description of (2+1)-dimensional BTZ black hole entropy. In the boundary Liouville field theory I investigate the reducible Verma modules in the elliptic sector, which correspond to certain irreducible representations of the quantum algebra U_q(sl_2) U_q̂(sl_2). I show that there are states that decouple from these reducible Verma modules in a similar fashion to the decoupling of null states in minimal models. Because ofthe nonstandard

more »

... of the Ward identity for the two-point correlation functions in quantum Liouville field theory, these decoupling states have positive-definite norms. The explicit counting from these states gives the desired Bekenstein-Hawking entropy in the semi-classical limit when q is a root of unity of odd order.