IDEAS home Printed from https://ideas.repec.org/p/ags/iaae18/277382.html
   My bibliography  Save this paper

Economics of GHG abatement strategies in Finnish mixed dairy farms

Author

Listed:
  • Lankoski, J.
  • Britz, W.
  • Lotjonen, S.
  • Ollikainen, M.

Abstract

We develop a theoretical framework to analyse economically optimal GHG abatement strategies for a mixed farming system with crop and dairy production. Subsequently, it is implemented as a detailed bio-economic optimization model for mixed arable-dairy farms with non-linear crop and milk yield functions and a detailed accounting of Green House Gas emissions, and parameterized to Finnish agricultural and environmental conditions. Focusing on the role of sunk costs of investments and opportunity costs of labour, we analyse optimal farm management decisions under different CO2 tax levels, considering adjustments at the extensive and intensive margin, including changes in manure storage systems and application methods. We find that the amount of GHG abatement responds more strongly to the level of sunk and opportunity costs than the CO2 tax level which underlines the relevance of the planning horizon for that type of analysis. Our findings reveal that low cost abatement options in dairy production are limited. Our model can be easily adjusted to other locations, market and policy conditions and thus provides an interesting starting point for international comparisons. Acknowledgement :

Suggested Citation

  • Lankoski, J. & Britz, W. & Lotjonen, S. & Ollikainen, M., 2018. "Economics of GHG abatement strategies in Finnish mixed dairy farms," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277382, International Association of Agricultural Economists.
  • Handle: RePEc:ags:iaae18:277382
    DOI: 10.22004/ag.econ.277382
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/277382/files/1899.pdf
    Download Restriction: no

    File URL: https://libkey.io/10.22004/ag.econ.277382?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    Agricultural and Food Policy;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:iaae18:277382. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/iaaeeea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.