Harvesting the Greenhouse through Altered Land Management: Economic Potential and Market Design Challenges

Schneider, Uwe A.; McCarl, Bruce A.; Woodward, Richard T.

Harvesting the Greenhouse through Altered Land Management: Economic Potential and Market Design Challenges

Schneider, Uwe A. ; McCarl, Bruce A. ; Woodward, Richard T.

An Agricultural Sector Model is used to determine the economic potential of agricultural greenhouse gas emission reduction strategies within hypothetical emission mitigation markets. For a complete set of agricultural land management decisions, emissions and emission reductions of carbon dioxide, methane, and nitrous oxide are accounted for and simultaneously subjected to a wide range of carbon prices. The estimated, competitive emission abatement supply functions for major agricultural strategies are contrasted with two other commonly used measures of abatement potential: single strategy economic potential and technical potential. Specific agricultural production and market characteristics that further impact agriculture's mitigation potential are discussed.

Keywords:

greenhouse gas emission mitigation market ; Agricultural Sector Model ; economic potential ; environmental policy design ; non-point source ; cropland heterogeneity ; transaction cost ; emission leakage

Subject(s):

Land Economics/Use

Issue Date:

2001

Publication Type:

Working or Discussion Paper

Record Identifier:

https://ageconsearch.umn.edu/record/18538

PURL Identifier:

http://purl.umn.edu/18538