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The choice of emission indicators in environmental policy design: an analysis of GHG abatement in different dairy farms based on a bio-economic model approach

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  • Bernd Lengers

    (Wissenschaftlicher Mitarbeiter, Institut fur Lebensmittel- und Ressourcenökonomik (ILR), Abt. Ressourcen- und Umweltökonomik, Nussallee 21, 53115 Bonn, Allemagne)

  • Wolfgang Britz

    (Wissenschaftlicher Mitarbeiter, Institut fur Lebensmittel- und Ressourcenökonomik (ILR), Abt. Wirtschafts- und Agrarpolitik)

Abstract

The application of economic instruments to GHG emissions from dairy farms needs to rely on GHG indicators as actual emissions are impossible or extremely costly to measure. The choice of indicator impacts chosen abatement options, related costs and GHG actually emitted. A tool to quantify these relations is proposed which at its core consists of a highly detailed, mixed-integer dynamic programming model template able to cover a wide range of dairy farm characteristics and promising indicators. It allows deriving and comparing marginal abatement costs of GHGs emission for different farm types and indicators, informing the policy process about promising indicators, abatement strategies and related abatement and measurement costs.

Suggested Citation

  • Bernd Lengers & Wolfgang Britz, 2012. "The choice of emission indicators in environmental policy design: an analysis of GHG abatement in different dairy farms based on a bio-economic model approach," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement, INRA Department of Economics, vol. 93(2), pages 117-144.
    • Handle: RePEc:rae:jourae:v:93:y:2012:i:2:p:117-144
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    2. Remble, Amber & Britz, Wolfgang & Keeney, Roman, 2013. "Farm Level Tradeoffs in the Regulation of Greenhouse Gas Emissions," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150442, Agricultural and Applied Economics Association.
    3. Carpentier, Alain & Gohin, Alexandre & Sckokai, Paolo & Thomas, Alban, 2015. "Economic modelling of agricultural production: past advances and new challenges," Revue d'Etudes en Agriculture et Environnement, Editions NecPlus, vol. 96(01), pages 131-165, March.
    4. Garbert, Johanna & Holm-Mueller, Karin, 2015. "Impacts of policies to implement the EU Water Framework Directive on development strategies and income of typical pig farms in an intensively farmed region of Germany," Discussion Papers 206384, University of Bonn, Institute for Food and Resource Economics.
    5. Sanna Lötjönen & Esa Temmes & Markku Ollikainen, 2020. "Dairy Farm Management when Nutrient Runoff and Climate Emissions Count," American Journal of Agricultural Economics, John Wiley & Sons, vol. 102(3), pages 960-981, May.
    6. Britz, Wolfgang, 2014. "A New Graphical User Interface Generator for Economic Models and its Comparison to Existing Approaches," Journal of International Agricultural Trade and Development, Journal of International Agricultural Trade and Development, vol. 63(4).
    7. Tzemi, Domna & Breen, James, 2019. "Reducing greenhouse gas emissions through the use of urease inhibitors: A farm level analysis," Ecological Modelling, Elsevier, vol. 394(C), pages 18-26.
    8. Kahil, Mohamed Taher & Albiac, José, 2013. "Greenhouse gases mitigation policies in the agriculture of Aragon, Spain," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 2(1), pages 1-24, April.
    9. Lengers, Bernd & Britz, Wolfgang & Holm-Müller, Karin, 2013. "Trade-off of feasibility against accuracy and cost efficiency in choosing indicators for the abatement of GHG-emissions in dairy farming," Discussion Papers 162877, University of Bonn, Institute for Food and Resource Economics.
    10. Britz, Wolfgang, 2014. "A New Graphical User Interface Generator for Economic Models and its Comparison to Existing Approaches," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 63(04), pages 1-15, December.
    11. Eory, Vera, 2015. "Evaluating the use of marginal abatement cost curves applied to greenhouse gas abatement in agriculture," Working Papers 199777, Scotland's Rural College (formerly Scottish Agricultural College), Land Economy & Environment Research Group.
    12. Britz, Wolfgang & Pérez-Dominguez, Ignacio & Narayanan, Gopalakrishnan Badri, 2015. "Analyzing Results from Agricultural Large-scale Economic Simulation Models: Recent Progress and the Way Ahead," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 64(02), June.

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    More about this item

    Keywords

    marginal abatement costs; emission indicators; dynamic mixed integer programming; greenhouse gas emissions;
    All these keywords.

    JEL classification:

    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects

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