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Producer Preference for Land-Based Biological Carbon Sequestration in Agriculture: An Economic Inquiry

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  • Jiang, Yong
  • Koo, Won W.
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    Abstract

    This study was intended to develop an understanding of producer preference for land-based carbon sequestration in agriculture. We conducted a mail survey to elicit producer choice to provide marketable carbon offsets by participating in different carbon credit programs characterized by varying practices. Based on a quantitative analysis, we found that: 1) the market price for carbon offsets could increase producer participation in carbon sequestration; 2) producers perceived differentially different but correlated private costs for adopting carbon sequestering practices, depending on production attributes; and 3) relatively high carbon prices would be needed to stimulate producer provision of carbon offsets by land-based carbon sequestration activities. A simulation of producer choice with agricultural census data estimated potential carbon offsets supply in the Northern Great Plains region. This study contributes to the economic understanding of agricultural potential for greenhouse gas mitigation.

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    Bibliographic Info

    Paper provided by Agricultural and Applied Economics Association in its series 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania with number 104512.

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    Date of creation: 2011
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    Handle: RePEc:ags:aaea11:104512

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    Related research

    Keywords: greenhouse gas; carbon sequestration; producer stated preferences; agriculture; economics; carbon offsets; carbon markets; Agricultural and Food Policy; Environmental Economics and Policy; Farm Management; Land Economics/Use; Production Economics; Resource /Energy Economics and Policy; Q54; Q52; Q58;

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    1. Lubowski, Ruben N. & Plantinga, Andrew J. & Stavins, Robert N., 2005. "Land-Use Change and Carbon Sinks: Econometric Estimation of the Carbon Sequestration Supply Function," Working paper 225, Regulation2point0.
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