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Abstract
The Australian Government’s Carbon
Farming Initiative provides carbon credit
incentives for farmers to encourage climate change
mitigation on agricultural land. In addition to
carbon sequestration or reduced emissions, carbon
farming activities often generate ancillary benefits,
such as creation of native habitat or erosion
prevention. We conduct a choice experiment study
to estimate community values for climate change
mitigation, and the ancillary effects of carbon
farming. Respondents’ WTP depends on their
perceptions of climate change and on age, income
and political preferences. Respondents who
believe in climate change are willing to pay $7.56
per 1% reduction in Australia’s overall greenhouse
gas emissions. Respondents are willing to pay
$16.88 per 1% increase in the area of native
vegetation on farmland, and $2.89 per 1%
reduction in soil erosion. The value estimates will
allow for more targeted development of carbon
farming policies.