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Economic Analysis Of Agricultural Soil Carbon Sequestration: An Integrated Assessment Approach

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  • Antle, John M.
  • Capalbo, Susan M.
  • Mooney, Sian
  • Elliott, Edward T.
  • Paustian, Keith H.

Abstract

This study develops an integrated assessment approach for analysis of the economic potential for carbon sequestration in agricultural soils. By linking a site-specific economic simulation model of agricultural production to a crop ecosystem model, the approach shows the economic efficiency of soil carbon (C) sequestration depends on site-specific opportunity costs of changing production practices and rates of soil C sequestration. An application is made to the dryland grain production systems of the U.S. Northern Plains which illustrates the sensitivity of the sequestration costs to policy design. The marginal cost of soil C ranges from $12 to $500 per metric ton depending upon the type of contract or payment mechanism used, the amount of carbon sequestered, and the site-specific characteristics of the areas.

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Bibliographic Info

Article provided by Western Agricultural Economics Association in its journal Journal of Agricultural and Resource Economics.

Volume (Year): 26 (2001)
Issue (Month): 02 (December)
Pages:

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Handle: RePEc:ags:jlaare:31037

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Web page: http://waeaonline.org/
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Related research

Keywords: Crop Production/Industries;

References

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  1. 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, vol. 28(1), April.
  2. Antle, John M. & Capalbo, Susan M. & Crissman, Charles C., 1994. "Econometric Production Models With Endogenous Input Timing: An Application To Ecuadorian Potato Production," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 19(01), July.
  3. 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.
  4. Ralph Alig & Darius Adams & Bruce McCarl & J. Callaway & Steven Winnett, 1997. "Assessing effects of mitigation strategies for global climate change with an intertemporal model of the U.S. forest and agriculture sectors," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 9(3), pages 259-274, April.
  5. 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.
  6. Hongli Feng & Jinhua Zhao & Catherine L. Kling, 2000. "Carbon Sequestration in Agriculture: Value and Implementation," Center for Agricultural and Rural Development (CARD) Publications 00-wp256, Center for Agricultural and Rural Development (CARD) at Iowa State University.
  7. RICHARD M. Adams & DARIUS M. Adams & JOHN M. Callaway & CHING-CHENG Chang & BRUCE A. Mccarl, 1993. "Sequestering Carbon On Agricultural Land: Social Cost And Impacts On Timber Markets," Contemporary Economic Policy, Western Economic Association International, vol. 11(1), pages 76-87, 01.
  8. Robert N. Stavins, 1999. "The Costs of Carbon Sequestration: A Revealed-Preference Approach," American Economic Review, American Economic Association, vol. 89(4), pages 994-1009, September.
  9. Pfaff, Alexander S. P. & Kerr, Suzi & Hughes, R. Flint & Liu, Shuguang & Sanchez-Azofeifa, G. Arturo & Schimel, David & Tosi, Joseph & Watson, Vicente, 2000. "The Kyoto protocol and payments for tropical forest:: An interdisciplinary method for estimating carbon-offset supply and increasing the feasibility of a carbon market under the CDM," Ecological Economics, Elsevier, vol. 35(2), pages 203-221, November.
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