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Public willingness to pay for carbon farming and its co-benefits

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  • Kragt, Marit E.
  • Gibsona, Fiona L.
  • Maseyk, Fleurk
  • Wilson, Kerrie A.

Abstract

Governments worldwide have implemented climate change mitigation policies that aim to encourage abatement by changing agricultural practices. In Australia, farmers can gain carbon credits for sequestering carbon or reducing emissions. In addition to mitigation, these 'carbon farming' activities often generate ancillary (co-)benefits, such as creating native habitat or preventing erosion. This paper presents results of an Australia-wide choice experiment, conducted to estimate community values for climate change mitigation and the co-benefits of carbon farming. Values for carbon farming benefits are shown to depend on respondent’s opinions about climate change. Respondents who do not believe that climate change is happening have a lower willingness to pay for reducing Australia’s greenhouse gas emissions than people who believe climate change is (at least partly) caused by human actions. On average, respondents’ were willing to pay $1.13/Mt of CO2-e reduction. Respondents were willing to pay around $19/ha increase in the area of native vegetation on farmland. Value estimates for reducing soil erosion were not significant. Our results demonstrate that the community benefits from carbon farming extend beyond their effects on climate change mitigation. Future policies should take these positive values for co- benefits into account.

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  • Kragt, Marit E. & Gibsona, Fiona L. & Maseyk, Fleurk & Wilson, Kerrie A., 2018. "Public willingness to pay for carbon farming and its co-benefits," Working Papers 276116, University of Western Australia, School of Agricultural and Resource Economics.
    • Handle: RePEc:ags:uwauwp:276116
    DOI: 10.22004/ag.econ.276116
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    5. Kragt, M.E. & Gibson, F.L. & Maseyk, F. & Wilson, K.A., 2016. "Public willingness to pay for carbon farming and its co-benefits," Ecological Economics, Elsevier, vol. 126(C), pages 125-131.
    6. Qinpeng Wang & Longfei He & Daozhi Zhao & Michele Lundy, 2018. "Diverse Schemes of Cost Pooling for Carbon-Reduction Outsourcing in Low-Carbon Supply Chains," Energies, MDPI, vol. 11(11), pages 1-17, November.
    7. Otte, Pia Piroschka & Vik, Jostein, 2017. "Biochar systems: Developing a socio-technical system framework for biochar production in Norway," Technology in Society, Elsevier, vol. 51(C), pages 34-45.
    8. Lokuge, Nimanthika & Anders, Sven, 2022. "Carbon-Credit Systems in Agriculture: A Review of Literature," SPP Technical Papers, The School of Public Policy, University of Calgary, vol. 15(12), April.
    9. Birkenberg, A., 2018. "Carbon neutral global value chains: demand or desire? - Consumers willingness to pay for a carbon neutrality label on specialty coffee in Germany," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277277, International Association of Agricultural Economists.
    10. Luisa Fernanda Eusse-Villa & Cristiano Franceschinis & Mara Thiene & Jürgen Meyerhoff & Alex McBratney & Damien Field, 2021. "Attitudes and Preferences towards Soil-Based Ecosystem Services: How Do They Vary across Space?," Sustainability, MDPI, vol. 13(16), pages 1-19, August.
    11. Cristiano Franceschinis & Ulf Liebe & Mara Thiene & Jürgen Meyerhoff & Damien Field & Alex McBratney, 2022. "The effect of social and personal norms on stated preferences for multiple soil functions: evidence from Australia and Italy," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 66(2), pages 335-362, April.
    12. Per Espen Stoknes & Olav B. Soldal & Sissel Hansen & Ingvar Kvande & Sylvia Weddegjerde Skjelderup, 2021. "Willingness to Pay for Crowdfunding Local Agricultural Climate Solutions," Sustainability, MDPI, vol. 13(16), pages 1-16, August.
    13. Sovacool, Benjamin K. & Baum, Chad M. & Low, Sean, 2023. "Beyond climate stabilization: Exploring the perceived sociotechnical co-impacts of carbon removal and solar geoengineering," Ecological Economics, Elsevier, vol. 204(PA).
    14. Baumber, Alex & Metternicht, Graciela & Cross, Rebecca & Ruoso, Laure-Elise & Cowie, Annette L. & Waters, Cathleen, 2019. "Promoting co-benefits of carbon farming in Oceania: Applying and adapting approaches and metrics from existing market-based schemes," Ecosystem Services, Elsevier, vol. 39(C).
    15. Abbie A. Rogers & Fiona L. Dempster & Jacob I. Hawkins & Robert J. Johnston & Peter C. Boxall & John Rolfe & Marit E. Kragt & Michael P. Burton & David J. Pannell, 2019. "Valuing non-market economic impacts from natural hazards," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 99(2), pages 1131-1161, November.
    16. Valentina Kashintseva & Wadim Strielkowski & Justas Streimikis & Tatiana Veynbender, 2018. "Consumer Attitudes towards Industrial CO 2 Capture and Storage Products and Technologies," Energies, MDPI, vol. 11(10), pages 1-14, October.
    17. Shannan K. Sweet & Jonathon P. Schuldt & Johannes Lehmann & Deborah A. Bossio & Dominic Woolf, 2021. "Perceptions of naturalness predict US public support for Soil Carbon Storage as a climate solution," Climatic Change, Springer, vol. 166(1), pages 1-15, May.
    18. Mst Asma Khatun & Shibly Shahrier & Koji Kotani, 2020. "Cooperation and cognition gaps for salinity: A field experiment of information provision," Working Papers SDES-2020-4, Kochi University of Technology, School of Economics and Management, revised Jun 2020.
    19. Liuyang Yao & Minjuan Zhao & Yu Cai & Zhaowei Yin, 2018. "Public Preferences for the Design of a Farmland Retirement Project: Using Choice Experiments in Urban and Rural Areas of Wuwei, China," Sustainability, MDPI, vol. 10(5), pages 1-16, May.
    20. Johannes Dahlin & Verena Halbherr & Peter Kurz & Michael Nelles & Carsten Herbes, 2016. "Marketing Green Fertilizers: Insights into Consumer Preferences," Sustainability, MDPI, vol. 8(11), pages 1-15, November.

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