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Derived Carbon Credit Values for Carbon Sequestration: Do CO2 Emissions From Production Inputs Matter?

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  • Williams, Jeffery R.
  • Nelson, Richard G.
  • Aller, Taryn D.
  • Claassen, Mark M.
  • Rice, Charles W.

Abstract

An economic analysis was conducted involving wheat and grain sorghum production systems that affect carbon dioxide emissions and sequester soil carbon. Parameters examined were expected net returns, changes in net carbon sequestered and the value of carbon credits necessary to equate net returns from systems that sequester more carbon to those that sequester less with and without adjustments for CO2 emissions from production inputs. Evaluations were based on experiment station cropping practices, yield, and soil carbon data for continuously cropped and rotated wheat and grain sorghum produced with conventional and no-tillage. No-till had lower net returns because of lower yields and higher overall costs. Both crops produced under no-till had higher annual soil C gains than under conventional tillage. However, no-till systems had higher total atmospheric emissions of C from production inputs. The differences were relatively small. The C values estimated in this study that would equate net returns of no-tillage to conventional tillage range from $7.82 to $58.69/ton/yr when C emissions from production inputs were subtracted from soil carbon sequestered and $7.79 to $54.99/ton/yr when atmospheric emissions were not considered.

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Bibliographic Info

Paper provided by Kansas State University, Department of Agricultural Economics in its series Staff Papers with number 117983.

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Date of creation: Jun 2002
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Handle: RePEc:ags:ksaesp:117983

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Keywords: Environmental Economics and Policy;

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  1. McCarl, Bruce A. & Schneider, Uwe A., 1999. "Curbing Greenhouse Gases: Agriculture's Role," Choices, Agricultural and Applied Economics Association, vol. 14(1).
  2. Smith, Elwin G. & Lerohl, Mel L. & Messele, Teklay & Janzen, H. Henry, 2000. "Soil Quality Attribute Time Paths: Optimal Levels And Values," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 25(01), July.
  3. Langemeier, Larry N., 2000. "Kansas Farm Management Data Bank Documentation," Staff Papers 117996, Kansas State University, Department of Agricultural Economics.
  4. Antle, John M. & Capalbo, Susan M. & Mooney, Sian & Elliott, Edward T. & Paustian, Keith H., 2000. "Economics Of Agricultural Soil Carbon Sequestration In The Northern Plains," Trade Research Center Research Discussion Papers 29239, Montana State University, Department of Agricultural Economics and Economics.
  5. Paudel, Krishna P. & Lohr, Luanne, 2000. "Meeting The Kyoto Target Through Conservation Tillage And Its Implication For Natural Capital Maintenance, Production Efficiency, And Sustainability," Series Reports 23812, Auburn University, Department of Agricultural Economics and Rural Sociology.
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