Advanced Search
MyIDEAS: Login to save this article or follow this journal

Implications of a Carbon-Based Energy Tax for U.S. Agriculture

Contents:

Author Info

  • Schneider, Uwe A.
  • McCarl, Bruce A.

Abstract

Policies to mitigate greenhouse gas emissions are likely to increase energy prices. Higher energy prices raise farmer costs for diesel and other fuels, irrigation water, farm chemicals, and grain drying. Simultaneously, renewable energy options become more attractive to agricultural producers. We consider both of these impacts, estimating the economic and environmental consequences of higher energy prices on U.S. agriculture. To do this we employ a price-endogenous agricultural sector model and solve that model for a range of carbon-tax-based energy price changes. Our results show mostly positive impacts on net farm income in the intermediate run. Through market price adjustments, fossil fuel costs are largely passed on to consumers. Additional farm revenue arises from the production of biofuels when carbon taxes reach $30 per ton of carbon or more. Positive environmental benefits include not only greenhouse gas emission offsets but also reduced levels of nitrogen leaching.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://purl.umn.edu/10242
Download Restriction: no

Bibliographic Info

Article provided by Northeastern Agricultural and Resource Economics Association in its journal Agricultural and Resource Economics Review.

Volume (Year): 34 (2005)
Issue (Month): 2 (October)
Pages:

as in new window
Handle: RePEc:ags:arerjl:10242

Contact details of provider:
Web page: http://www.narea.org/
More information through EDIRC

Related research

Keywords: energy tax; greenhouse gas policy; U.S. agricultural sector; bioenergy; mathematical programming; Environmental Economics and Policy;

Other versions of this item:

Find related papers by JEL classification:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Hayri Önal & Bruce A. McCarl, 1991. "Exact Aggregation in Mathematical Programming Sector Models," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 39(2), pages 319-334, 07.
  2. Antle, John M. & Capalbo, Susan M. & Johnson, James B. & Miljkovic, Dragan, 1999. "The Kyoto Protocol: Economic Effects Of Energy Prices On Northern Plains Dryland Grain Production," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, Northeastern Agricultural and Resource Economics Association, vol. 28(1), April.
  3. Uwe A. Schneider & Bruce A. McCarl, 2002. "Potential of U.S. Agriculture and Forestry to Mitigate Greenhouse Gas Emissions: An Agricultural Sector Analysis, The," Center for Agricultural and Rural Development (CARD) Publications 02-wp300, Center for Agricultural and Rural Development (CARD) at Iowa State University.
  4. Uwe A. Schneider & Bruce A. McCarl, 2001. "Economic Potential of Biomass-Based Fuels for Greenhouse Gas Emission Mitigation," Center for Agricultural and Rural Development (CARD) Publications 01-wp280, Center for Agricultural and Rural Development (CARD) at Iowa State University.
  5. Chen, Chi-Chung & McCarl, Bruce A., 2000. "The Value Of Enso Information To Agriculture: Consideration Of Event Strength And Trade," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, Western Agricultural Economics Association, vol. 25(02), December.
  6. Schneider, Uwe A. & Kumar, Pushpam, 2008. "Greenhouse Gas Mitigation through Agriculture," Choices, Agricultural and Applied Economics Association, Agricultural and Applied Economics Association, vol. 23(1).
  7. Harry S. Baumes & Bruce A. McCarl, 1978. "Linear Programming And Social Welfare: Model Formulation And Objective Function Alternatives," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 26(3), pages 53-60, November.
  8. Moreira, Jose R. & Goldemberg, Jose, 1999. "The alcohol program," Energy Policy, Elsevier, vol. 27(4), pages 229-245, April.
  9. Alig, Ralph J. & Adams, Darius M. & McCarl, Bruce A., 1998. "Impacts Of Incorporating Land Exchanges Between Forestry And Agriculture In Sector Models," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, Southern Agricultural Economics Association, vol. 30(02), December.
  10. Konyar, Kazim & Howitt, Richard E., 2000. "The Cost Of The Kyoto Protocol To U.S. Crop Production: Measuring Crop Price, Regional Acreage, Welfare, And Input Substitution Effects," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, Western Agricultural Economics Association, vol. 25(02), December.
  11. Spreen, Thomas H., 2006. "Price Endogenous Mathematical Programming Models and Trade Analysis," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, Southern Agricultural Economics Association, vol. 38(02), August.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Ahlroth, Sofia & Hojer, Mattias, 2007. "Sustainable energy prices and growth: Comparing macroeconomic and backcasting scenarios," Ecological Economics, Elsevier, vol. 63(4), pages 722-731, September.
  2. Thompson, Wyatt & Meyer, Seth D. & Westhoff, Patrick C., 2008. "Potential for Uncertainty about Indirect Effects of Ethanol on Land Use in the Case of Brazil," Environmental and Rural Development Impacts Conference, October 15-16, 2008, St. Louis, Missouri, Farm Foundation, Transition to a Bio Economy Conferences 54650, Farm Foundation, Transition to a Bio Economy Conferences.
  3. P. Michael Link, 2003. "Auswirkungen populationsdynamischer Veränderungen in Fischbeständen auf die Fischereiwirtschaft in der Barentssee," Working Papers, Research unit Sustainability and Global Change, Hamburg University FNU-29, Research unit Sustainability and Global Change, Hamburg University, revised May 2003.
  4. Virginie Doumax-Tagliavini & Jean-Marc Philip & Cristina Sarasa, 2013. "Biofuels, Tax Policies and Oil Prices in France: Insights from a Dynamic CGE Model," EcoMod2013 6245, EcoMod.
  5. Roberto Roson & Richard s.J. Tol, 2003. "An Integrated Assessment Model Of Economy-Energy-Climate – The Model Wiagem: A Comment," Working Papers, Research unit Sustainability and Global Change, Hamburg University FNU-26, Research unit Sustainability and Global Change, Hamburg University, revised May 2003.
  6. Dritan Osmani, . "A note on optimal transfer schemes, stable coalition for environmental protection and joint maximization assumption," Working Papers, Research unit Sustainability and Global Change, Hamburg University FNU-176, Research unit Sustainability and Global Change, Hamburg University.
  7. I. Hakan Yetkiner, 2003. "Is There An Indispensable Role For Government During Recovery From An Earthquake? A Theoretical Elaboration," Working Papers, Research unit Sustainability and Global Change, Hamburg University FNU-25, Research unit Sustainability and Global Change, Hamburg University, revised Apr 2003.
  8. I. Hakan Yetkiner & Albert de Vaal & Adriaan van Zon, 2003. "The Cyclical Advancement of Drastic Technologies," Working Papers, Research unit Sustainability and Global Change, Hamburg University FNU-21, Research unit Sustainability and Global Change, Hamburg University, revised Apr 2003.
  9. Uwe A. Schneider & Michael Obersteiner & Erwin Schmid & Bruce A. McCarl, 2007. "Agricultural adaptation to climate policies under technical change," Working Papers, Research unit Sustainability and Global Change, Hamburg University FNU-133, Research unit Sustainability and Global Change, Hamburg University, revised Jan 2008.
  10. Virginie Doumax & Jean-Marc Philip & Cristina Sarasa, 2013. "Biofuels, tax policies and oil price: insights from a dynamic CGE model," EcoMod2013 5417, EcoMod.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:ags:arerjl:10242. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.