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The Kyoto Protocol: Economic Effects Of Energy Prices On Northern Plains Dryland Grain Production

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  • Antle, John M.
  • Capalbo, Susan M.
  • Johnson, James B.
  • Miljkovic, Dragan

Abstract

This study examined possible economic impacts on Northern Plains grain producers of policies that could be undertaken by the United States to comply with the Kyoto Protocol. The paper begins with a discussion of the potential effects of the Kyoto Protocol on prices of energy and inputs used in agricultural production. The next section describes the data and econometric models that were used to develop a field-scale, stochastic simulation model of the crop production system typical of the Northern Plains. This model is based on econometric production models estimated with a spatially referenced, statistically representative sample of farmers in Montana. The simulation analysis shows that the impacts of higher energy prices would tend to discourage the use of fallow, raise variable costs of production by 3 to 13%, and reduce net returns above variable cost by 6 to 18% in the case of spring wheat grown on fallow, Under the higher cost scenarios assumed in an analysis conducted by the Farm Bureau, production costs for spring wheat on fallow would increase by 15 to 27% and net returns would decline by 15 to 24%.

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Bibliographic Info

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

Volume (Year): 28 (1999)
Issue (Month): 1 (April)
Pages:

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Handle: RePEc:ags:arerjl:31494

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Web page: http://www.narea.org/
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Keywords: Resource /Energy Economics and Policy;

References

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  1. Joskow, Paul L & Schmalensee, Richard & Bailey, Elizabeth M, 1998. "The Market for Sulfur Dioxide Emissions," American Economic Review, American Economic Association, vol. 88(4), pages 669-85, September.
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Cited by:
  1. Heng-Chi Lee & Bruce A. McCarl & Uwe A. Schneider & Chi-Chung Chen, 2003. "Leakage and Comparative Advantage Implications of Agricultural Participation in Greenhouse Gas Emission Mitigation," Working Papers FNU-18, Research unit Sustainability and Global Change, Hamburg University, revised Jan 2003.
  2. John M. Antle & Susan M. Capalbo, 2001. "Econometric-Process Models for Integrated Assessment of Agricultural Production Systems," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(2), pages 389-401.
  3. Uwe A. Schneider & Bruce A. McCarl, 2003. "Implications Of A Carbon Based Energy Tax For U.S. Agriculture," Working Papers FNU-17, Research unit Sustainability and Global Change, Hamburg University, revised Jan 2003.
  4. Antle, John M. & Capalbo, Susan M. & Mooney, Sian & Elliott, Edward T. & Paustian, Keith H., 2001. "Economic Analysis Of Agricultural Soil Carbon Sequestration: An Integrated Assessment Approach," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 26(02), December.
  5. Antle, John M. & Capalbo, Susan M. & Mooney, Sian & Elliott, Edward T. & Paustian, Keith H., 2000. "Economics Of Agricultural Soil Carbon Sequestration In The Northern Great Plains," 2000 Annual meeting, July 30-August 2, Tampa, FL 21879, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  6. Johansson, Robert C. & Gowda, Prasanna H. & Mulla, David J. & Dalzell, Brent J., 2004. "Metamodelling phosphorus best management practices for policy use: a frontier approach," Agricultural Economics, Blackwell, vol. 30(1), pages 63-74, January.

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