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The choice of emission indicators in environmental policy design: an analysis of GHG abatement in different dairy farms based on a bio-economic model approach

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  • Lengers, Bernd
  • Britz, Wolfgang

Abstract

The application of economic instruments to GHG emissions from dairy farms needs to rely on GHG indicators as actual emissions are impossible or extremely costly to measure. The choice of indicator impacts chosen abatement options, related costs and GHG actually emitted. A tool to quantify these relations is proposed which at its core consists of a highly detailed, mixed-integer dynamic programming model template able to cover a wide range of dairy farm characteristics and promising indicators. It allows deriving and comparing marginal abatement costs of GHGs emission for different farm types and indicators, informing the policy process about promising indicators, abatement strategies and related abatement and measurement costs.

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  • Lengers, Bernd & Britz, Wolfgang, 2012. "The choice of emission indicators in environmental policy design: an analysis of GHG abatement in different dairy farms based on a bio-economic model approach," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement (RAEStud), Institut National de la Recherche Agronomique (INRA), vol. 93(2).
    • Handle: RePEc:ags:frraes:188222
    DOI: 10.22004/ag.econ.188222
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    1. Sanna Lötjönen & Esa Temmes & Markku Ollikainen, 2020. "Dairy Farm Management when Nutrient Runoff and Climate Emissions Count," American Journal of Agricultural Economics, John Wiley & Sons, vol. 102(3), pages 960-981, May.
    2. Remble, Amber & Britz, Wolfgang & Keeney, Roman, 2013. "Farm Level Tradeoffs in the Regulation of Greenhouse Gas Emissions," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150442, Agricultural and Applied Economics Association.
    3. CARPENTIER, Alain & GOHIN, Alexandre & SCKOKAI, Paolo & THOMAS, Alban, 2015. "Economic modelling of agricultural production: past advances and new challenges," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement (RAEStud), Institut National de la Recherche Agronomique (INRA), vol. 96(1), March.
    4. Tzemi, Domna & Breen, James, 2019. "Reducing greenhouse gas emissions through the use of urease inhibitors: A farm level analysis," Ecological Modelling, Elsevier, vol. 394(C), pages 18-26.
    5. Garbert, Johanna & Holm-Mueller, Karin, 2015. "Impacts of policies to implement the EU Water Framework Directive on development strategies and income of typical pig farms in an intensively farmed region of Germany," Discussion Papers 206384, University of Bonn, Institute for Food and Resource Economics.
    6. Viaggi, Davide & Raggi, Meri & Gomez y Paloma, Sergio, 2011. "Farm-household investment behaviour and the CAP decoupling: Methodological issues in assessing policy impacts," Journal of Policy Modeling, Elsevier, vol. 33(1), pages 127-145, January.
    7. Kahil, Mohamed Taher & Albiac, José, 2013. "Greenhouse gases mitigation policies in the agriculture of Aragon, Spain," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 2(1), pages 1-24, April.
    8. Lengers, Bernd & Britz, Wolfgang & Holm-Müller, Karin, 2013. "Trade-off of feasibility against accuracy and cost efficiency in choosing indicators for the abatement of GHG-emissions in dairy farming," Discussion Papers 162877, University of Bonn, Institute for Food and Resource Economics.
    9. Britz, Wolfgang, 2014. "A New Graphical User Interface Generator for Economic Models and its Comparison to Existing Approaches," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 63(04), pages 1-15, December.
    10. Britz, Wolfgang, 2014. "A New Graphical User Interface Generator for Economic Models and its Comparison to Existing Approaches," Journal of International Agricultural Trade and Development, Journal of International Agricultural Trade and Development, vol. 63(4).
    11. Eory, Vera, 2015. "Evaluating the use of marginal abatement cost curves applied to greenhouse gas abatement in agriculture," Working Papers 199777, Scotland's Rural College (formerly Scottish Agricultural College), Land Economy & Environment Research Group.
    12. Britz, Wolfgang & Pérez-Dominguez, Ignacio & Narayanan, Gopalakrishnan Badri, 2015. "Analyzing Results from Agricultural Large-scale Economic Simulation Models: Recent Progress and the Way Ahead," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 64(02), June.

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    More about this item

    Keywords

    Environmental Economics and Policy; Livestock Production/Industries;

    JEL classification:

    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects

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