IDEAS home Printed from https://ideas.repec.org/a/ags/gjagec/96766.html
   My bibliography  Save this article

Opt-in of the agricultural sector to the European trading scheme for greenhouse gas emissions – a proposal and its possible effects

Author

Listed:
  • Perez Dominguez, Ignacio
  • Holm-Muller, Karin

Abstract

In light of international discussions on a possible opt-in of the agricultural sector to the current European emission trading system for greenhouse gases, the objective of this article is to present a feasible implementation strategy for a market of emission permits in European agriculture and to simulate its economic effects within the regionalised agricultural sector model CAPRI. With this purpose, we compare the effects of a 15% reduction of greenhouse gas emissions from European agriculture with and without a trading scheme. Our findings suggest that if significant emission abatement is to be achieved in the agricultural sector, efficiency gains from expanding the current emission trading scheme to this sector can be appreciable. An additional finding of this paper is that under the current protective measures in the CAP and in the absence of a successful WTO reform round, emission reduction does not result in a net income loss for the agricultural sector due to the ‘quota effect’ caused by the isolation of European agricultural markets from world markets.

Suggested Citation

  • Perez Dominguez, Ignacio & Holm-Muller, Karin, 2007. "Opt-in of the agricultural sector to the European trading scheme for greenhouse gas emissions – a proposal and its possible effects," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 56(08), pages 1-12.
    • Handle: RePEc:ags:gjagec:96766
    DOI: 10.22004/ag.econ.96766
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/96766/files/3_Perez.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.96766?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. de Cara, Stephane & Jayet, Pierre-Alain, 2001. "Agriculture And Climate Change In The Eu: Greenhouse Gas Emissions And Abatement Costs," 2001 Annual meeting, August 5-8, Chicago, IL 20577, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bernd Lengers & Wolfgang Britz, 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, INRA Department of Economics, vol. 93(2), pages 117-144.
    2. Dominguez, Ignacio Perez & Britz, Wolfgang, 2010. "Greenhouse Gas Emission Trading In European Agriculture: A Comparison Of Different Policy Implementation Options In Year 2020," 2010: Climate Change in World Agriculture: Mitigation, Adaptation, Trade and Food Security, June 2010, Stuttgart-Hohenheim, Germany 91396, International Agricultural Trade Research Consortium.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jónsson, Jón Örvar G. & Davíðsdóttir, Brynhildur & Nikolaidis, Nikolaos P. & Giannakis, Georgios V., 2019. "Tools for Sustainable Soil Management: Soil Ecosystem Services, EROI and Economic Analysis," Ecological Economics, Elsevier, vol. 157(C), pages 109-119.
    2. 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).
    3. Povellato, Andrea & Bosello, Francesco & Giupponi, Carlo, 2007. "A Review of Recent Studies on Cost Effectiveness of GHG Mitigation Measures in the European Agro-Forestry Sector," Natural Resources Management Working Papers 10268, Fondazione Eni Enrico Mattei (FEEM).
    4. 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), pages 1-17, January.
    5. Ovando, Paola & Caparrós, Alejandro, 2009. "Land use and carbon mitigation in Europe: A survey of the potentials of different alternatives," Energy Policy, Elsevier, vol. 37(3), pages 992-1003, March.
    6. de Cara, Stephane & Houze, Martin & Jayet, Pierre-Alain, 2004. "Greenhouse gas emissions from agriculture in the EU: A spatial assessment of sources and abatement costs," 2004 Conference (48th), February 11-13, 2004, Melbourne, Australia 58401, Australian Agricultural and Resource Economics Society.
    7. Meyer-Aurich, Andreas & Truggelmann, Lothar, 2002. "Finding the optimal balance between economical and ecological demands on agriculture – research results and model calculations for a Bavarian experimental farm," 2002 Conference (46th), February 13-15, 2002, Canberra, Australia 125139, Australian Agricultural and Resource Economics Society.
    8. Meyer-Aurich, Andreas, 2005. "Economic and environmental analysis of sustainable farming practices - a Bavarian case study," Agricultural Systems, Elsevier, vol. 86(2), pages 190-206, November.
    9. Henseler, Martin & Dechow, Rene, 2014. "Simulation of regional nitrous oxide emissions from German agricultural mineral soils: A linkage between an agro-economic model and an empirical emission model," Agricultural Systems, Elsevier, vol. 124(C), pages 70-82.
    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).

    More about this item

    Keywords

    Agricultural and Food Policy;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:gjagec:96766. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/iahubde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.