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Changes in Quebec Cropping Practices in Response to a Carbon Offset Market: A Simulation

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  • Hugues Morand
  • Paul J. Thomassin

Abstract

This paper investigates the response of the Quebec cropping sector to the introduction of carbon credit revenue made available through the implementation of a domestic emission trading and offset system in Canada. Eligible carbon sequestering practices investigated include adoption of moderate tillage and no‐till as well as conversion to a permanent cover crop. Monetary demand for greenhouse gas emissions offsets from the cropping sector is endogenized in the objective function of the Canadian Regional Agriculture Model (CRAM). Changes in cropping sector practices induced by the introduction of carbon prices ranging from $5 to $50 per tonne CO2e are compared to a baseline. Results indicate that almost all of the potential to sequester carbon in agricultural soils in Quebec would lie in the conversion to permanent cover. Le présent article a examiné la réaction du secteur des cultures du Québec à l'introduction de revenus qui proviendraient de la vente de crédits carbone à la suite de la mise en place de systèmes d'échange de droits d'émissions et de compensations pour les gaz à effet de serre (GES) au Canada. Les pratiques de séquestration du carbone admissibles analysées comprenaient le travail réduit du sol, le semis direct et l'établissement d'une couverture végétale permanente. La demande monétaire pour l'obtention de crédits compensatoires de la part du secteur des cultures a été endogénéisée dans la fonction‐objective du modèle d'analyse régionale de l'agriculture du Canada (CRAM). Les modifications de pratiques du secteur des cultures suscitées par l'introduction de prix du carbone, variant entre 5 $ et 50 $ la tonne d'équivalent‐CO2, ont été comparées à une base de référence. Les résultats ont montré que la quasi‐totalité du potentiel des sols agricoles du Québec à séquestrer le carbone réside dans l'établissement de couvertures végétales permanentes.

Suggested Citation

  • Hugues Morand & Paul J. Thomassin, 2005. "Changes in Quebec Cropping Practices in Response to a Carbon Offset Market: A Simulation," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 53(4), pages 403-424, December.
    • Handle: RePEc:bla:canjag:v:53:y:2005:i:4:p:403-424
    DOI: 10.1111/j.1744-7976.2005.00027.x
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    1. Graham, John D. & Stennes, Brad & MacGregor, Robert J. & Meilke, Karl & Moschini, Giancarlo, 1990. "The Effects of Trade Liberalization on the Canadian Dairy and Poultry Sectors," Working Papers 244045, Agriculture and Agri-Food Canada.
    2. Kerr, W.A. & Fox, G. & Hobbs, J.E., 1991. "Summary of Regional Impacts of Compensatory Freight Rates for Prairie Grain," Papers 4-91, Gouvernement du Canada - Agriculture Canada.
    3. Horner, G.L. & Corman, J. & Howitt, R.E. & Carter, C.A. & MacGregor, R.J., 1992. "The Canadian Regional Agriculture Model Structure, Operation and Development," Papers 1-92, Gouvernement du Canada - Agriculture Canada.
    4. Kerr, W.A. & Fox, G. & Hobbs, J.E., 1991. "Regional Implications of Compensatory Freight Rates for Prairie Grains and Oilseeds," Papers 3-91, Gouvernement du Canada - Agriculture Canada.
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    1. Canales, Elizabeth & Bergtold, Jason S. & Williams, Jeffery & Peterson, Jeffrey, 2015. "Estimating farmers’ risk attitudes and risk premiums for the adoption of conservation practices under different contractual arrangements: A stated choice experiment," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205640, Agricultural and Applied Economics Association.

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