Derived Carbon Credit Values for Carbon Sequestration: Do CO2 Emissions From Production Inputs Matter?
AbstractAn 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 InfoPaper provided by Kansas State University, Department of Agricultural Economics in its series Staff Papers with number 117983.
Date of creation: Jun 2002
Date of revision:
Environmental Economics and Policy;
Other versions of this item:
- Williams, Jeffery R. & Nelson, Richard G. & Aller, Taryn D. & Claassen, Mark M. & Rice, Charles W., 2002. "Derived Carbon Credit Values For Carbon Sequestration: Do Co2 Emissions From Production Inputs Matter ?," 2002 Annual meeting, July 28-31, Long Beach, CA 19798, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
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