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Strategies to mitigate greenhouse gas and nitrogen emissions in Swiss agriculture: the application of an integrated sector model

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Abstract

Environmental impacts of agricultural production, such as greenhouse gas (GHG) and nitrogen emissions, are of major concern for scientists and policy makers throughout the world. Global agricultural activities account for about 60% of nitrous oxide and about 50% of methane emissions. From a global perspective, methane and nitrous oxide constitute crucial GHGs. They contribute substantially to climate change due to their high potential for effecting global warming compared to carbon dioxide. Emissions of these gases depend on the extent of agricultural production and applied technologies. Therefore, analysis of potential mitigation opportunities is challenging and requires an integrated approach in order to link agricultural economic perspectives to environmental aspects. In view of this, a mathematical programming model has been developed which enables assessment of cost-effective strategies for mitigating GHG and nitrogen emissions in the agricultural sector in Switzerland. This model is applied to improve understanding of the agricultural sector and its behavior with changing conditions in technology and policy. The presented recursive-dynamic model mimics the structure and inter- dependencies of Swiss agriculture and links that framework to core sources of GHG and nitrogen emissions. Calculated results for evaluation and application indicate that employed flexibility constraints provide a feasible approach to sufficiently validate the described model. Recursive-dynamic elements additionally enable adequate modeling of both an endogenous development of livestock dynamics and investments in buildings and machinery, also taking sunk costs into account. The presented findings reveal that the specified model approach is suitable to accurately estimate agricultural structure, GHG and nitrogen emissions within a tolerable range. The model performance can therefore be described as sufficiently robust and satisfactory. Thus, the model described here appropriately models strategies for GHG and nitrogen abatement in Swiss agriculture. The results indicate that there are limits to the ability of Swiss agriculture to contribute substantially to the mitigation of GHG and nitrogen emissions. There is only a limited level of mitigation available through technical approaches, and these approaches have high cost.

Suggested Citation

  • Michael Hartmann & Robert Huber & Simon Peter & Bernard Lehmann, 2009. "Strategies to mitigate greenhouse gas and nitrogen emissions in Swiss agriculture: the application of an integrated sector model," IED Working paper 09-09, IED Institute for Environmental Decisions, ETH Zurich.
  • Handle: RePEc:ied:wpsied:09-09
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    File URL: http://www.ied.ethz.ch/pub/pdf/IED_WP09_Hartmann_et_al.pdf
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    Cited by:

    1. Rohling, Moritz & Ohndorf, Markus, 2012. "Prices vs. Quantities with fiscal cushioning," Resource and Energy Economics, Elsevier, vol. 34(2), pages 169-187.
    2. Robert Huber & Christian Häberli, 2010. "A ‘beyond WTO’ scenario for Swiss agriculture: Consequences for income generation and the provision of public goods," Journal of Socio-Economics in Agriculture (Until 2015: Yearbook of Socioeconomics in Agriculture), Swiss Society for Agricultural Economics and Rural Sociology, vol. 3(1), pages 361-400.
    3. Markus Ohndorf, 2010. "Optimal Monitoring for project-based Emissions Trading Systems under incomplete Enforcement," IED Working paper 10-13, IED Institute for Environmental Decisions, ETH Zurich.
    4. Salvatore Falco & Marcella Veronesi, 2018. "Managing Environmental Risk in Presence of Climate Change: The Role of Adaptation in the Nile Basin of Ethiopia," Natural Resource Management and Policy, in: Leslie Lipper & Nancy McCarthy & David Zilberman & Solomon Asfaw & Giacomo Branca (ed.), Climate Smart Agriculture, pages 497-526, Springer.
    5. Julia Blasch & Mehdi Farsi, 2012. "Retail demand for voluntary carbon offsets - A choice experiment among Swiss consumers," IED Working paper 12-18, IED Institute for Environmental Decisions, ETH Zurich.
    6. Briner, Simon & Hartmann, Michael & Lehmann, Bernard, 2011. "Economic Assessment of Agroforestry Systems Compared to Other Greenhouse Gas Mitigation Options for Suckler Cow Farming," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114271, European Association of Agricultural Economists.
    7. Ines Kapphan & Pierluigi Calanca & Annelie Holzkaemper, 2011. "Climate Change, Weather Insurance Design and Hedging Effectiveness," IED Working paper 11-17, IED Institute for Environmental Decisions, ETH Zurich.
    8. Simon Briner & Michael Hartmann & Robert Finger & Bernard Lehmann, 2012. "Greenhouse gas mitigation and offset options for suckler cow farms: an economic comparison for the Swiss case," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 17(4), pages 337-355, April.
    9. Thomas Epper & Helga Fehr-Duda & Renate Schubert, 2011. "Energy-Using Durables: The Role of Time Discounting in Investment Decisions," IED Working paper 11-16, IED Institute for Environmental Decisions, ETH Zurich.
    10. Thomas Bernauer & Lena Maria Schaffer, 2010. "Climate Change Governance," IED Working paper 10-12, IED Institute for Environmental Decisions, ETH Zurich.
    11. Justin Caron & Markus Ohndorf, 2010. "Irreversibility and Optimal Timing of Climate Policy," IED Working paper 10-14, IED Institute for Environmental Decisions, ETH Zurich.
    12. Huber, Robert & Lehmann, Bernard, 2010. "Economies of Scope in the Agricultural Provision of Ecosystem Services: An Application to a High Cost Production Region," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 59(02), pages 1-15, June.
    13. Huber, Robert & Lehmann, Bernard, 2010. "Economies of Scope in the Agricultural Provision of Ecosystem Services: An Application to a High Cost Production Region," Journal of International Agricultural Trade and Development, Journal of International Agricultural Trade and Development, vol. 59(2).
    14. Salvatore Di Falco & Marcella Veronesi, 2011. "On Adaptation to Climate Change and Risk Exposure in the Nile Basin of Ethiopia," IED Working paper 11-15, IED Institute for Environmental Decisions, ETH Zurich.
    15. Michele Baggio, 2012. "The Optimal Management of a Natural Resource with Switching Dynamics," IED Working paper 12-19, IED Institute for Environmental Decisions, ETH Zurich.
    16. Boon-Ling Yeo & Andrew Coleman, 2019. "Taxes versus emissions trading system: evaluating environmental policies that affect multiple types of pollution," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 21(1), pages 141-169, January.
    17. Salvatore Di Falco & Marcella Veronesi, 2011. "On Adaptation to Climate Change and Risk Exposure in the Nile Basin of Ethiopia," IED Working paper 11-15, IED Institute for Environmental Decisions, ETH Zurich.

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    Keywords

    resource use; environmental economics; greenhouse gas emission; nitrogen emission; integrated modeling;
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