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Leakage and Comparative Advantage Implications of Agricultural Participation in Greenhouse Gas Emission Mitigation

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Author Info

  • Heng-Chi Lee
  • Bruce A. McCarl
  • Uwe A. Schneider

    ()
    (Research unit Sustainability and Global Change)

  • Chi-Chung Chen

Abstract

The world is moving toward efforts to reduce greenhouse gas emissions. Net emission reduction efforts may involve the agricultural sector through options such as planting of trees, crop and livestock management changes, and production of biofuels. However, such options can be competitive with domestic food production. In a free trade arena, reduced domestic food production could stimulate increased production and exports in other countries, which are not pursuing similar mitigative courses of action. As a consequence, net emission reductions in implementing countries may be offset by activities stimulated in other countries. In addition producers in countries where agriculture is subject to greenhouse gas mitigation have expressed concern about their competitive position to countries which are not trying to reduce net emissions.

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File URL: http://www.fnu.zmaw.de/fileadmin/fnu-files/publication/working-papers/agemleak_FNU18.pdf
File Function: First version, 2003
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Bibliographic Info

Paper provided by Research unit Sustainability and Global Change, Hamburg University in its series Working Papers with number FNU-18.

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Length: 19 pages
Date of creation: Jan 2003
Date of revision: Jan 2003
Handle: RePEc:sgc:wpaper:18

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Related research

Keywords: Emission Leakage; Agricultural Sector Model; Greenhouse Gas Policy; Mitigation; Carbon Sequestration;

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References

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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. Felder Stefan & Rutherford Thomas F., 1993. "Unilateral CO2 Reductions and Carbon Leakage: The Consequences of International Trade in Oil and Basic Materials," Journal of Environmental Economics and Management, Elsevier, vol. 25(2), pages 162-176, September.
  3. Bernstein, Paul M. & Montgomery, W. David & Rutherford, Thomas F., 1999. "Global impacts of the Kyoto agreement: results from the MS-MRT model," Resource and Energy Economics, Elsevier, vol. 21(3-4), pages 375-413, August.
  4. Wu, JunJie & Zilberman, David & Babcock, Bruce A., 2001. "Environmental and Distributional Impacts of Conservation Targeting Strategies," Staff General Research Papers 1931, Iowa State University, Department of Economics.
  5. JunJie Wu, 2000. "Slippage Effects of the Conservation Reserve Program," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(4), pages 979-992.
  6. Babiker, Mustafa H., 2001. "Subglobal climate-change actions and carbon leakage: the implication of international capital flows," Energy Economics, Elsevier, vol. 23(2), pages 121-139, March.
  7. Adam B. Jaffe et al., 1995. "Environmental Regulation and the Competitiveness of U.S. Manufacturing: What Does the Evidence Tell Us?," Journal of Economic Literature, American Economic Association, vol. 33(1), pages 132-163, March.
  8. Antle, John M. & Capalbo, Susan M. & Johnson, James B. & Miljkovic, Dragan, 1999. "The Kyoto Protocol: Economic Effects Of Energy Prices On Northern Plains Dryland Grain Production," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 28(1), April.
  9. Chen, Chi-Chung & McCarl, Bruce A., 2000. "The Value Of Enso Information To Agriculture: Consideration Of Event Strength And Trade," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 25(02), December.
  10. Brian C. Murray & Bruce A. McCarl & Heng-Chi Lee, 2004. "Estimating Leakage from Forest Carbon Sequestration Programs," Land Economics, University of Wisconsin Press, vol. 80(1), pages 109-124.
  11. Louis Kaplow & Steven Shavell, 1999. "Economic Analysis of Law," NBER Working Papers 6960, National Bureau of Economic Research, Inc.
  12. Brooks, H. G. & Aradhyula, Satheesh V. & Johnson, Stanley R., 1992. "Land Quality and Producer Participation in U.S. Commodity Programs," Staff General Research Papers 470, Iowa State University, Department of Economics.
  13. Pethig, Rudiger, 1976. "Pollution, welfare, and environmental policy in the theory of Comparative Advantage," Journal of Environmental Economics and Management, Elsevier, vol. 2(3), pages 160-169, February.
  14. Hoag, Dana L. & Babcock, Bruce A. & Foster, William E., 1993. "Field-Level Measurements of Land Productivity and Program Slippage," Staff General Research Papers 10586, Iowa State University, Department of Economics.
  15. Konyar, Kazim & Howitt, Richard E., 2000. "The Cost Of The Kyoto Protocol To U.S. Crop Production: Measuring Crop Price, Regional Acreage, Welfare, And Input Substitution Effects," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 25(02), December.
  16. Revesz, Richard L. & Stavins, Robert N., 2007. "Environmental Law," Handbook of Law and Economics, Elsevier.
  17. Ralph Alig & Darius Adams & Bruce McCarl & J. Callaway & Steven Winnett, 1997. "Assessing effects of mitigation strategies for global climate change with an intertemporal model of the U.S. forest and agriculture sectors," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 9(3), pages 259-274, April.
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Citations

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Cited by:
  1. B. Jong & E. Bazán & S. Montalvo, 2007. "Application of the “Climafor” baseline to determine leakage: the case of Scolel Té," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 12(6), pages 1153-1168, July.
  2. Vaal, Albert de & Yetkiner, I. Hakan & Zon, Adriaan van, 2002. "The cyclical advancement of drastic technologies," CCSO Working Papers 200217, University of Groningen, CCSO Centre for Economic Research.
  3. I. Hakan Yetkiner, 2003. "Is There An Indispensable Role For Government During Recovery From An Earthquake? A Theoretical Elaboration," Working Papers FNU-25, Research unit Sustainability and Global Change, Hamburg University, revised Apr 2003.
  4. ince, meltem, 2011. "Financial liberalization, financial development and economic growth: An empirical analysis for Turkey," MPRA Paper 31978, University Library of Munich, Germany, revised 05 May 2011.
  5. Haim, David & White, Eric M. & Alig, Ralph J., 2014. "Permanence of agricultural afforestation for carbon sequestration under stylized carbon markets in the U.S," Forest Policy and Economics, Elsevier, vol. 41(C), pages 12-21.
  6. Roberto Roson & Richard s.J. Tol, 2003. "An Integrated Assessment Model Of Economy-Energy-Climate – The Model Wiagem: A Comment," Working Papers FNU-26, Research unit Sustainability and Global Change, Hamburg University, revised May 2003.
  7. Uwe A. Schneider & Bruce A. McCarl, 2005. "Appraising Agricultural Greenhouse Gas Mitigation Potentials: Effects of Alternative Assumptions," Working Papers FNU-81, Research unit Sustainability and Global Change, Hamburg University, revised Jul 2005.
  8. Mosnier, A. & Havlík, P. & Valin, H. & Baker, J. & Murray, B. & Feng, S. & Obersteiner, M. & McCarl, B.A. & Rose, S.K. & Schneider, U.A., 2013. "Alternative U.S. biofuel mandates and global GHG emissions: The role of land use change, crop management and yield growth," Energy Policy, Elsevier, vol. 57(C), pages 602-614.
  9. Zhou Yuan & Richard S.J. Tol, 2004. "Evaluating the costs of desalination and water transport," Working Papers FNU-41, Research unit Sustainability and Global Change, Hamburg University, revised Dec 2004.
  10. Britz, Wolfgang & van Ittersum, Martin K. & Oude Lansink, Alfons G.J.M. & Heckelei, Thomas, 2012. "Tools for Integrated Assessment in Agriculture. State of the Art and Challenges," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), issue 2, August.
  11. McCarl, Bruce A., 2008. "The Lifecycle Carbon Footprint, Bioenergy and Leakage: Empirical Investigations," Lifecycle Carbon Footprint of Biofuels Workshop, January 29, 2008, Miami Beach, Florida 49100, Farm Foundation.
  12. P. Michael Link, 2003. "Auswirkungen populationsdynamischer Veränderungen in Fischbeständen auf die Fischereiwirtschaft in der Barentssee," Working Papers FNU-29, Research unit Sustainability and Global Change, Hamburg University, revised May 2003.

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