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Carbon Emissions, Renewable Electricity, and Profits: Comparing Policies to Promote Anaerobic Digesters on Dairies

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  • Key, Nigel
  • Sneeringer, Stacy

Abstract

Anaerobic digesters can provide renewable energy and reduce greenhouse gas emissions from manure management. Government policies that encourage digester adoption by livestock operations include construction cost-share grants, renewable electricity subsidies, and carbon pricing (offset) programs. However, the effectiveness and efficiency of these policies is not well understood. For the U.S. dairy sector, we compare predicted digester adoption rates, carbon emission reductions, renewable electricity generation and sales, and net returns and social benefits of several policies. We find that a carbon pricing policy provides the greatest net social benefit for a range of assumptions about the benefits of carbon reductions and renewable energy.

Suggested Citation

  • Key, Nigel & Sneeringer, Stacy, 2012. "Carbon Emissions, Renewable Electricity, and Profits: Comparing Policies to Promote Anaerobic Digesters on Dairies," Agricultural and Resource Economics Review, Cambridge University Press, vol. 41(2), pages 139-157, August.
    • Handle: RePEc:cup:agrerw:v:41:y:2012:i:02:p:139-157_00
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    1. Lim, Teng & Massey, Ray & McCann, Laura & Canter, Timothy & Omura, Seabrook & Willett, Cammy & Roach, Alice & Key, Nigel & Dodson, Laura, "undated". "Increasing the Value of Manure for Farmers," USDA Miscellaneous 333552, United States Department of Agriculture.
    2. Benavidez, Justin & Thayer, Anastasia W., "undated". "Poo Power: Revisiting Energy Generation from Biogas on Dairies in Texas," 2018 Annual Meeting, February 2-6, 2018, Jacksonville, Florida 266636, Southern Agricultural Economics Association.
    3. Njuki, Eric & Bravo-Ureta, Boris B., 2014. "A Bayesian Approach to Analyzing the Economic Costs of Environmental Regulation in U.S. Dairy Farming," Working Paper series 290098, University of Connecticut, Charles J. Zwick Center for Food and Resource Policy.
    4. Anh Sam & Xiang Bi & Derek Farnsworth, 2017. "How Incentives Affect the Adoption of Anaerobic Digesters in the United States," Sustainability, MDPI, vol. 9(7), pages 1-14, July.
    5. Benavidez, Justin R. & Thayer, Anastasia W. & Anderson, David P., 2019. "Poo Power: Revisiting Biogas Generation Potential on Dairy Farms in Texas," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 51(4), pages 682-700, November.

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