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Greenhouse gas emissions from agriculture in the EU: A spatial assessment of sources and abatement costs

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  • Stéphane De Cara
  • Martin Houzé
  • Pierre-Alain Jayet

Abstract

Agriculture contributes significantly to the emissions of greenhouse gases in the EU. By using a farm-type, linear-programming based model of the European agricultural supply, we first assess the initial levels of methane and nitrous oxide emissions at the regional level in the EU. For a range of CO2 prices, we assess the potential abatement that can be achieved through an IPCC-based emission tax in EU agriculture, as well as the resulting optimal mix of emission sources in the total abatement. Further, we show that the spatial variability of the abatement actually achieved at a given carbon price is large, indicating that abatement cost heterogeneity is a fundamental feature in the design of a mitigation policy. We assess the efficiency loss associated with uniform standards relative to a an emission tax.

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Bibliographic Info

Paper provided by INRA, Economie Publique in its series Working Papers with number 2004/04.

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Date of creation: 01 Mar 2004
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Handle: RePEc:apu:wpaper:2004/04

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Keywords: Climate change; Greenhouse gas emissions; Agriculture; Methane; Nitrous oxide; European Union; Marginal abatement costs;

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References

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  1. Uwe A. Schneider, 2002. "Cost of Agricultural Carbon Savings, The," Center for Agricultural and Rural Development (CARD) Publications 02-wp306, Center for Agricultural and Rural Development (CARD) at Iowa State University.
  2. de Cara, Stephane & Jayet, Pierre-Alain, 2001. "Agriculture And Climate Change In The Eu: Greenhouse Gas Emissions And Abatement Costs," 2001 Annual meeting, August 5-8, Chicago, IL 20577, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  3. Stavins, Robert & Newell, Richard, 2000. "Cost Heterogeneity and the Potential Savings from Market-Based Policies," Discussion Papers dp-00-10-rev, Resources For the Future.
  4. De Cara & Jayet, 2000. "Emissions of greenhouse gases from agriculture : the heterogeneity of abatement costs in France," Working Papers 156214, Institut National de la Recherche Agronomique, France.
  5. Uwe A. Schneider & Bruce A. McCarl, 2001. "Economic Potential of Biomass-Based Fuels for Greenhouse Gas Emission Mitigation," Center for Agricultural and Rural Development (CARD) Publications 01-wp280, Center for Agricultural and Rural Development (CARD) at Iowa State University.
  6. Viguier, Laurent L. & Babiker, Mustafa H. & Reilly, John M., 2003. "The costs of the Kyoto Protocol in the European Union," Energy Policy, Elsevier, vol. 31(5), pages 459-481, April.
  7. Antle, John & Capalbo, Susan & Mooney, Sian & Elliott, Edward & Paustian, Keith, 2003. "Spatial heterogeneity, contract design, and the efficiency of carbon sequestration policies for agriculture," Journal of Environmental Economics and Management, Elsevier, vol. 46(2), pages 231-250, September.
  8. Schneider, Uwe A. & Kumar, Pushpam, 2008. "Greenhouse Gas Mitigation through Agriculture," Choices, Agricultural and Applied Economics Association, vol. 23(1).
  9. Feng, Hongli & Zhao, Jinhua & Kling, Catherine L., 2002. "Time Path and Implementation of Carbon Sequestration (The)," Staff General Research Papers 5068, Iowa State University, Department of Economics.
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Citations

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Cited by:
  1. Breen, James P. & Donnellan, Trevor & Westhoff, Patrick C., 2012. "Reducing Greenhouse Gas Emissions from Irish Agriculture: A market-based approach," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 130555, International Association of Agricultural Economists.
  2. Henseler, Martin & Dechow, Rene, 2014. "Simulation of regional nitrous oxide emissions from German agricultural mineral soils: A linkage between an agro-economic model and an empirical emission model," Agricultural Systems, Elsevier, vol. 124(C), pages 70-82.
  3. Heckelei, Thomas & Britz, Wolfgang & Zhang, Yinan, 2012. "Positive Mathematical Programming Approaches – Recent Developments in Literature and Applied Modelling," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), issue 1, April.
  4. Britz, Wolfgang & Heckelei, Thomas, 2008. "Recent Developments In Eu Policies – Challenges For Partial Equilibrium Models," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6315, European Association of Agricultural Economists.

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