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Time Path and Implementation of Carbon Sequestration (The)

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Author Info

  • Feng, Hongli
  • Zhao, Jinhua
  • Kling, Catherine L.

Abstract

We develop a dynamic model to investigate the optimal time paths of carbon emissions, sequestration, and the carbon stock. We show that carbon sinks should be utilized as early as possible, and carbon flow into sinks should last until the atmospheric carbon concentration is stabilized. We rule out any cyclical patterns of carbon sequestration and release. We propose and assess three mechanisms to efficiently introduce sequestration into a carbon permit trading market: a pay-as-you-go system, a variable-length-contract system and a carbon annuity account system. Although the three mechanisms may not be equally feasible to implement, they are all efficient.

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Bibliographic Info

Paper provided by Iowa State University, Department of Economics in its series Staff General Research Papers with number 5068.

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Date of creation: 01 Feb 2002
Date of revision:
Publication status: Published in American Journal of Agricultural Economics, February 2002, vol. 84 no. 1, pp. 134-149
Handle: RePEc:isu:genres:5068

Contact details of provider:
Postal: Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070
Phone: +1 515.294.6741
Fax: +1 515.294.0221
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Web page: http://www.econ.iastate.edu
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Citations

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Cited by:
  1. Feng, Hongli & Kling, Catherine L., 2005. "Carbon Sequestration in Agriculture: an Offset Program versus Other Conservation Programs," 2005 Annual meeting, July 24-27, Providence, RI 19177, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  2. Feng, Hongli & Kling, Catherine L., 2005. "Consequences of Co-Benefits for the Efficient Design of Carbon Sequestration Programs, The," Staff General Research Papers 12269, Iowa State University, Department of Economics.
  3. repec:hal:journl:halshs-00505137 is not listed on IDEAS
  4. Xabadia, Angels & Goetz, Renan-Ulrich & Zilberman, David, 2005. "Technology Adoption by Heterogeneous Producers to Regulate a Stock Externality," 2005 Annual meeting, July 24-27, Providence, RI 19538, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  5. Stéphane De Cara & Martin Houzé & Pierre-Alain Jayet, 2004. "Greenhouse gas emissions from agriculture in the EU: A spatial assessment of sources and abatement costs," Working Papers 2004/04, INRA, Economie Publique.
  6. Gulati, Sumeet & Vercammen, James, 2006. "Time inconsistent resource conservation contracts," Journal of Environmental Economics and Management, Elsevier, vol. 52(1), pages 454-468, July.
  7. de Cara, Stephane & Rozakis, Stelios, 2004. "Carbon sequestration through the planting of multi-annual energy crops: A dynamic and spatial assessment," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 5(1), January.
  8. Haim, David & Plantinga, Andrew J. & Thomann, Enrique, 2014. "The optimal time path for carbon abatement and carbon sequestration under uncertainty: The case of stochastic targeted stock," Resource and Energy Economics, Elsevier, vol. 36(1), pages 151-165.
  9. A. Caparrós & E. Cerdá & P. Ovando & P. Campos, 2007. "Carbon Sequestration with Reforestations and Biodiversity-Scenic Values," Working Papers 2007.28, Fondazione Eni Enrico Mattei.
  10. de Cara, Stephane & Rozakis, Stelios, 2003. "Carbon sequestration in agricultural soils: A dynamic assessment," 2003 Annual meeting, July 27-30, Montreal, Canada 21913, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  11. Xabadia, Angels & Goetz, Renan U. & Zilberman, David, 2006. "Control of accumulating stock pollution by heterogeneous producers," Journal of Economic Dynamics and Control, Elsevier, vol. 30(7), pages 1105-1130, July.
  12. Lionel Ragot & Katheline Schubert, 2006. "The optimal carbon sequestration in agricultural soils : does the dynamics of the physical process matter ?," Cahiers de la Maison des Sciences Economiques v06040, Université Panthéon-Sorbonne (Paris 1).
  13. Mireille Chiroleu-Assouline & Sebastien Roussel, 2014. "Payments for Carbon Sequestration in Agricultural Soils: Incentives for the Future and Rewards for the Past," CEEES Paper Series CE3S-01/14, European University at St. Petersburg, Department of Economics.
  14. repec:hal:journl:halshs-00115685 is not listed on IDEAS
  15. Hediger, Werner, 2009. "The non-permanence of optimal soil carbon sequestration," 83rd Annual Conference, March 30-April 1, 2009, Dublin, Ireland 51057, Agricultural Economics Society.
  16. Ervola, Asta & Lankoski, Jussi E. & Ollikainen, Markku, 2010. "Mitigation options and policies in agricultural sector: a theoretical model and application," 120th Seminar, September 2-4, 2010, Chania, Crete 109320, European Association of Agricultural Economists.

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