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Economics Of Agricultural Soil Carbon Sequestration In The Northern Plains

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  • Antle, John M.
  • Capalbo, Susan M.
  • Mooney, Sian
  • Elliott, Edward T.
  • Paustian, Keith H.

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 an ecosystem model to quantify the economic efficiency of policies that might be used to sequester carbon (C) in agricultural soils in the Northern Plains region. Simulations with the Century ecosystem model show that long-term soil C levels associated with a crop/fallow system are less than those for grass alone, but that soil C levels for grass-clover-pasture are greater than for continuously cropped grains. The analysis shows that a CRP-style policy is found to be an inefficient means to increase soil C because the per acre payments to convert crop-land to grass-only draw land from both the crop/fallow system and the continuous cropping system, and costs 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 depending on 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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Bibliographic Info

Paper provided by Montana State University, Department of Agricultural Economics and Economics in its series Trade Research Center Research Discussion Papers with number 29239.

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Date of creation: 2000
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Handle: RePEc:ags:motrdp:29239

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Web page: http://www.montana.edu/econ
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Related research

Keywords: policy design; economic efficiency; soil carbon; sequestration; valuing soil carbon; Great Plains agriculture; Resource /Energy Economics and Policy; Q2;

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Cited by:
  1. 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?," Staff Papers 117983, Kansas State University, Department of Agricultural Economics.
  2. Pautsch, Gregory R. & Kurkalova, Lyubov A. & Babcock, Bruce A. & Kling, Catherine L., 2001. "Efficiency of Sequestering Carbon in Agricultural Soils (The)," Staff General Research Papers 1870, Iowa State University, Department of Economics.
  3. John M. Antle & Susan M. Capalbo, 2001. "Econometric-Process Models for Integrated Assessment of Agricultural Production Systems," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(2), pages 389-401.
  4. Feng, Hongli & Kling, Catherine L. & Zhao, Jinhua, 2010. "Towards Implementing Carbon Markets in Agriculture," Staff General Research Papers 31454, Iowa State University, Department of Economics.
  5. Bruce A. Babcock & John C. Beghin & Michael D. Duffy & Hongli Feng & Brent Hueth & Catherine L. Kling & Lyubov A. Kurkalova & Uwe A. Schneider & Silvia Secchi & Quinn Weninger & Jinhua Zhao, 2001. "Conservation Payments: Challenges in Design and Implementation," Center for Agricultural and Rural Development (CARD) Publications 01-bp34, Center for Agricultural and Rural Development (CARD) at Iowa State University.

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