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Ex-ante evaluation of policy measures to enhance carbon sequestration in agricultural soils

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  • Hermann, Daniel
  • Sauthoff, Saramena
  • Mußhoff, Oliver

Abstract

In the course of climate change, sequestration of soil organic carbon (SOC) has gained importance as a compensation for carbon emissions. Moreover, the promotion of SOC is increasingly advocated as a measure to sustainably increase crop yields and reduce agricultural production risks. Applying an incentivized extra-laboratory experiment, we evaluate the factors and policy measures that affect the decision to promote SOC using a sample of German farmers. Our results reveal that farmers were highly motivated to promote SOC. Political fostering through subsidy payments increased farmers' efforts to build SOC. Efforts remained constant if economically equal payments were designated as certificates rather than subsidies. Surprisingly, certificates with uncertain payments increased farmers' efforts to enhance SOC to a similar degree as subsidy and certificate scenarios, which provided fixed and therefore certain payments. Thus, these results contribute valuable information regarding the effectiveness of market-based policy measures which aim to include farmers in climate protection strategies.

Suggested Citation

  • Hermann, Daniel & Sauthoff, Saramena & Mußhoff, Oliver, 2017. "Ex-ante evaluation of policy measures to enhance carbon sequestration in agricultural soils," Ecological Economics, Elsevier, vol. 140(C), pages 241-250.
  • Handle: RePEc:eee:ecolec:v:140:y:2017:i:c:p:241-250
    DOI: 10.1016/j.ecolecon.2017.05.018
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    2. Buchholz, Matthias & Peth, Denise & Mußhoff, Oliver, 2018. "Tax or green nudge? An experimental analysis of pesticide policies in Germany," DARE Discussion Papers 1813, Georg-August University of Göttingen, Department of Agricultural Economics and Rural Development (DARE).
    3. François J Dessart & Jesús Barreiro-Hurlé & René van Bavel, 2019. "Behavioural factors affecting the adoption of sustainable farming practices: a policy-oriented review," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 46(3), pages 417-471.
    4. Wening Sarwosri, Arieska & Wegmann, Johannes & Mußhoff, Oliver, 2018. "Encouraging rainforest preservation by smallholders: An ex-ante policy evaluation," EFForTS Discussion Paper Series 23, University of Goettingen, Collaborative Research Centre 990 "EFForTS, Ecological and Socioeconomic Functions of Tropical Lowland Rainforest Transformation Systems (Sumatra, Indonesia)".
    5. Denise Peth & Oliver Mußhoff, 2020. "Comparing Compliance Behaviour of Students and Farmers. An Extra‐laboratory Experiment in the Context of Agri‐environmental Nudges in Germany," Journal of Agricultural Economics, Wiley Blackwell, vol. 71(2), pages 601-615, June.

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