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Net Greenhouse Gas Emissions and the Economics of Annual Crop Management Systems

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  • Antony K. Samarawickrema
  • Ken W. Belcher

Abstract

The aim of this study was to evaluate the relative economic profitability and net greenhouse gas (GHG) abatement potential of alternative tillage and cropping systems. A simulation model was parameterized using biophysical and economic data representing different crop rotations under conventional, minimum, and zero tillage cropping systems, in the Black soil zone of Saskatchewan. This model was used to estimate the relative potential of each of the management practices to sequester carbon and to emit GHG including, nitrous oxide and carbon dioxide. The model also provided estimates of the relative profitability of each of the management practices over time horizons of 30 years. These simulation results were used to develop trade‐off functions reflecting net income and net GHG abatement for each cropping system. An income risk measure was incorporated to facilitate an analysis of the relative economic attractiveness of the simulated cropping systems. Furthermore, sensitivity analysis was performed on nitrous oxide emission coefficients (an area of significant uncertainty in the literature) and on weather patterns to reflect uncertain future climate change impacts. Results indicated that net GHG emissions were relatively lower for reduced tillage management, while conventional tillage may be relatively more attractive from an economic perspective. However, results also indicated that such economic factors as risk and economies of size may have a significant influence on this latter result. La présente étude visait àévaluer la rentabilitééconomique relative et le potentiel de réduction nette des gaz à effet de serre (GES) de divers systèmes de travail du sol et de culture. Nous avons paramétré un modèle de simulation en utilisant des données biophysiques et économiques représentant diverses rotations des cultures avec travail conventionnel du sol, avec travail réduit du sol et sans travail du sol, dans la zone des sols noirs de la Saskatchewan. Nous avons utilisé ce modèle pour estimer la capacité de séquestration du carbone et d'émission de GES, dont l'oxyde de diazote et le dioxyde de carbone, de chaque pratique culturale. Ce modèle nous a également permis d'estimer la rentabilité relative de chaque pratique culturale sur une période de 30 ans. Les résultats de la simulation ont été utilisés pour élaborer des fonctions de compromis montrant le revenu net et la réduction nette de GES de chaque système de culture. Nous avons inclus une mesure du risque lié au revenu afin de faciliter l'analyse de l'attrait économique des systèmes de culture simulés. De plus, nous avons effectué une analyse de sensibilité des coefficients d'émission d'oxyde de diazote (sujet de grande incertitude dans la documentation scientifique) et des situations météorologiques afin de faire ressortir les répercussions incertaines des changements climatiques futurs. Les résultats ont montré que le travail réduit du sol produisait de faibles émissions nettes de GES, tandis que le travail conventionnel du sol semblait plus attrayant du point de vue économique. Toutefois, les résultats ont également montré que des facteurs économiques tels que le risque et les économies de taille pouvaient avoir une influence considérable sur ce dernier résultat.

Suggested Citation

  • Antony K. Samarawickrema & Ken W. Belcher, 2005. "Net Greenhouse Gas Emissions and the Economics of Annual Crop Management Systems," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 53(4), pages 385-401, December.
  • Handle: RePEc:bla:canjag:v:53:y:2005:i:4:p:385-401
    DOI: 10.1111/j.1744-7976.2005.00026.x
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    Cited by:

    1. Galinato, Gregmar I. & Galinato, Suzette P., 2016. "The effects of government spending on deforestation due to agricultural land expansion and CO2 related emissions," Ecological Economics, Elsevier, vol. 122(C), pages 43-53.
    2. Mireille Chiroleu-Assouline & Sébastien Roussel, 2010. "Contract Design to Sequester Carbon in Agricultural Soils," Documents de travail du Centre d'Economie de la Sorbonne 10060, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
    3. Boxall, Peter C. & Weber, Marian & Perger, Orsolya & Cutlac, Marius & Samarawickrema, Antony, 2008. "Results from the Farm Behaviour Component of the Integrated Economic-Hydrologic Model for the Watershed Evaluation of Beneficial Management Practices Program," Project Report Series 116268, University of Alberta, Department of Resource Economics and Environmental Sociology.
    4. Gregmar Galinato & Suzette Galinato, 2013. "The Role of Government Spending on Deforestation and Carbon Dioxide Emissions from Land Use Change," Working Papers 2013-14, School of Economic Sciences, Washington State University.

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