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Carbon Markets and Methane Digesters: Potential Implications for the Dairy Sector

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  • Key, Nigel
  • Sneeringer, Stacy

Abstract

Anaerobic digesters that capture and burn manure methane can provide a renewable source of energy and reduce greenhouse gas emissions. Paying producers for these emission reductions—either directly or through a carbon offset market—could substantially increase digester adoption. However, there is likely to be wide variation in the scale, location, and characteristics of adopters, so these policies could have long run structural implications for the livestock sector. Using a model of digester profits and data from a nationally-representative survey of dairy operations we estimate the likely distribution of digester adoption and profits under different carbon price scenarios.

Suggested Citation

  • Key, Nigel & Sneeringer, Stacy, 2011. "Carbon Markets and Methane Digesters: Potential Implications for the Dairy Sector," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 43(4), pages 569-590, November.
    • Handle: RePEc:cup:jagaec:v:43:y:2011:i:04:p:569-590_00
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    Cited by:

    1. Key, Nigel & Sneeringer, Stacy, 2012. "Carbon Emissions, Renewable Electricity, and Profits: Comparing Policies to Promote Anaerobic Digesters on Dairies," Agricultural and Resource Economics Review, Cambridge University Press, vol. 41(2), pages 139-157, August.
    2. Boaitey, Albert & Goddard, Ellen & Mohapatra, Sandeep, 2019. "Environmentally friendly breeding, spatial heterogeneity and effective carbon offset design in beef cattle," Food Policy, Elsevier, vol. 84(C), pages 35-45.

    More about this item

    JEL classification:

    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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