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Carbon sequestration through the planting of multi-annual energy crops: A dynamic and spatial assessment

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  • Stéphane De Cara
  • Stelios Rozakis

Abstract

In this study, we examine the spatial and dynamic implications of policies aimed at increasing carbon sequestration in agricultural soils. We consider incentive mechanisms designed to encourage the planting of energy multi-annual crops that allow higher carbon sequestration rates for a longer period of time. By using a dynamic micro-economic model, we simulate the sequence of crop plantings over a given time horizon and investigate different payment mechanisms (per-ton or per-hectare). We discuss their implications in terms of regulation policy and efficiency. This model is then applied to the Central Plains of Thessaly, Greece, to assess the marginal costs of carbon sequestration and the optimal timing of switching to multi-annual energy crops. To do so, we combine the dynamic microeconomic model with a carbon accounting model and a geophysical database. We assess the efficiency loss of constant per-hectare payments compared to per-ton mechanisms. The dynamic and spatial implications of these mechanisms are compared and discussed.

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Bibliographic Info

Paper provided by INRA, Economie Publique in its series Working Papers with number 2004/05.

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Date of creation: 01 Oct 2004
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Handle: RePEc:apu:wpaper:2004/05

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Keywords: Carbon sequestration; climate change; Greece; Energy crops; Dynamic mathematical programming;

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  1. Schneider, Uwe A. & Kumar, Pushpam, 2008. "Greenhouse Gas Mitigation through Agriculture," Choices, Agricultural and Applied Economics Association, vol. 23(1).
  2. 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.
  3. Stavins, Robert & Newell, Richard, 1999. "Climate Change and Forest Sinks: Factors Affecting the Costs of Carbon Sequestration," Discussion Papers dp-99-31-rev, Resources For the Future.
  4. 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.
  5. 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).
  6. Douglas J. Miller, 1999. "An Econometric Analysis of the Costs of Sequestering Carbon in Forests," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(4), pages 812-824.
  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. Bruce A. McCarl & Brian C. Murray & Uwe A. Schneider, 2001. "Influences of Permanence on the Comparative Value of Biological Sequestration versus Emissions Offsets," Center for Agricultural and Rural Development (CARD) Publications 01-wp282, Center for Agricultural and Rural Development (CARD) at Iowa State University.
  9. Hongli Feng, 2002. "Dynamics of Carbon Sequestration and Measures of Cost-Effectiveness, The," Center for Agricultural and Rural Development (CARD) Publications 02-wp320, Center for Agricultural and Rural Development (CARD) at Iowa State University.
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Cited by:
  1. Carmen Camacho & Agustín Pérez-Barahona, 2012. "Land use dynamics and the environment," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00674020, HAL.
  2. Mireille Chiroleu-Assouline & Sébastien Roussel, 2010. "Contract Design to Sequester Carbon in Agricultural Soils," Documents de travail du Centre d'Economie de la Sorbonne 10060, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
  3. repec:hal:journl:halshs-00674020 is not listed on IDEAS

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