The Role of Global Land Use in Determining Greenhouse Gases Mitigation Costs
AbstractThis paper develops a CGE model with unique regional land types and detailed non-CO2 GHG emissions which it uses to analyze the potential for reductions in land-based greenhouse gas emissions as well as forest sequestration. In our global, general equilibrium analysis of carbon taxation, we find that forest carbon sequestration is the dominant means for global GHG emissions reduction in the land using sectors. However, when compared to the rest of the world, emissions abatement in the US comes disproportionately from agriculture, and, within agriculture, disproportionately from reductions in fertilizer-related emissions (primarily in maize production). In the world as a whole, agriculture-related mitigation comes predominantly in reduced methane emissions from ruminant livestock, which is followed in relative importance by reductions in methane emissions from paddy rice. We also find significant linkages between emissions in one region and mitigation in another (i.e. leakage). For example, in the US agriculture, abatement potential is cut in half when we move from a national tax to a global carbon tax. This is a consequence of the strong export orientation of US agriculture, which responds to reduced production in the rest of the world by increasing its own production and hence emissions.
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Bibliographic InfoPaper provided by Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University in its series GTAP Working Papers with number 2230.
Date of creation: 2006
Date of revision:
Note: GTAP Working Paper No. 36
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This paper has been announced in the following NEP Reports:
- NEP-AGR-2006-12-09 (Agricultural Economics)
- NEP-ALL-2006-12-09 (All new papers)
- NEP-ENE-2006-12-09 (Energy Economics)
- NEP-ENV-2006-12-09 (Environmental Economics)
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- HUBERT Marie-HÃ©lÃ¨ne & MOREAUX Michel, 2007. "The challenge of meeting the future food needs," LERNA Working Papers 07.17.238, LERNA, University of Toulouse.
- Acosta, Montserrat & Sohngen, Brent, 2009. "How big is leakage from forestry carbon credits? Estimates from a Global Model," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49468, Agricultural and Applied Economics Association.
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