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Economics Of Agricultural Soil Carbon Sequestration In The Northern Great Plains

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Author Info
Antle, John M.
Capalbo, Susan M.
Mooney, Sian
Elliot, Edward
Paustian, Keith
Abstract

Under the Kyoto protocol of the United Nations Framework Convention on Climate Change the United States is charged with reducing emissions of greenhouse gases to seven percent below their 1990 levels by the period 2008-2012. These reductions could be met from many industries including agriculture. In this paper, an economic simulation model is linked to the CENTURY ecosystem model to quantify the economic efficiency of policies that might be used to sequester carbon (C) in agricultural soils in the Northern Great Plains region. Model outputs are combined to assess the costs of inducing changes in equilibrium levels of soil C through three types of policies. The first is a CRP-style policy that provides producers with per-acre payments for converting crop-land to permanent grass; the second is a policy that provides per-acre payments to all farmers that use continuous cropping, regardless of the land's cropping history; the third is a policy that provides per-acre payments for the use of continuous cropping only on land units that had previously been in a crop/fallow rotation. The analysis shows that a CRP-style policy is found to be an inefficient means to increase soil C resulting in costs that typically exceed $100 per MT (metric ton) of C. In contrast, payments to adopt continuous cropping were found to produce increases in soil C for between $5 to $70/MT depending on the geographic area and degree of targeting of the payments. The most efficient, lowest cost policy is achieved when payments are targeted to land that was previously in a crop/fallow rotation. In this range, soil C sequestration appears to be competitive with C sequestered from other sources.

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Publisher Info
Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2000 Annual meeting, July 30-August 2, Tampa, FL with number 21879.

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Date of creation: 2000
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Handle: RePEc:ags:aaea00:21879

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Related research
Keywords: policy design; economic efficiency; soil carbon; sequestration; valuing soil carbon; Great Plains agriculture; Environmental Economics and Policy; Q2;

References listed on IDEAS
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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. [Downloadable!]
  2. 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. [Downloadable!] (restricted)
  3. Antle, John M & Capalbo, Susan M, 2001. " Econometric-Process Models for Integrated Assessment of Agricultural Production Systems," American Journal of Agricultural Economics, American Agricultural Economics Association, vol. 83(2), pages 389-401, May. [Downloadable!] (restricted)
  4. 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. [Downloadable!] (restricted)
  5. Antle, John M. & Capalbo, Susan M., 2000. "Econometric-Process Models For Integrated Assessment Of Agricultural Production Systems," Trade Research Center Research Discussion Papers 29234, Montana State University, Department of Agricultural Economics and Economics. [Downloadable!]
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