@article{Blandford:108780,
      recid = {108780},
      author = {Blandford, David and Gaasland, Ivar and Vardal, Erling},
      title = {Activity level, emission intensity, and optimal GHG  abatement policy: An application to Norwegian agriculture},
      address = {2011-04},
      number = {353-2016-18068},
      pages = {20},
      year = {2011},
      abstract = {Despite the failure of the U.N. Copenhagen climate  conference in December 2009 efforts are
continuing to reach  agreement on binding global commitments on greenhouse gas  (GHG)
emissions. At the same time, efforts are still  underway to conclude the Doha Round of trade
negotiations  through the World Trade Organization (WTO). Both of these  agreements could
have a significant impact on the level of  activity in agriculture and the GHG emissions that  it
generates. In this paper we explore strategies to comply  with both trade liberalization and
GHG emission reduction  commitments. We examine the implications of trade  liberalization
and a carbon tax, both of which affect  agricultural output, as means of achieving  emission
reductions. We emphasize two diametrically  different responses to a carbon tax. One
adaptation is to  change the way agricultural commodities are produced, i.e.,  choosing less
polluting techniques, which we argue will  require more land per unit of output. The second
response  is to use agricultural land for carbon sequestration  purposes (offsets), e.g., for
perennial grasses or  forestry. We show that when an offset option is introduced,  production
intensity tends to increase, such that emissions  per unit of output rise. The theoretical results
are  illustrated by using a partial equilibrium model of the  Norwegian agricultural sector.},
      url = {http://ageconsearch.umn.edu/record/108780},
      doi = {https://doi.org/10.22004/ag.econ.108780},
}