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How costly is mitigation of non-CO2 greenhouse gas emissions from agriculture?: A meta-analysis

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  • Vermont, Bruno
  • De Cara, Stéphane

Abstract

This text reviews the assessments of marginal abatement costs of methane and nitrous oxide emissions from agriculture. We use agricultural emissions and the corresponding prices collected from 21 studies that have assessed abatement potentials and costs using various modeling approaches and assumptions. We first highlight the implications of the modeling approach for marginal abatement costs. Harmonized abatement rates for three emission prices (10, 20 and 50Â [euro]2005/tCO2eq) are regressed on variables that reflect various modeling assumptions and study characteristics. In a second step, the emission price is introduced as an explanatory variable. When controlling for a few key characteristics of the studies, the models explain an important share of the observed variability in abatement rates. The type of modeling approach is found to have a significant effect. In particular, we find that equilibrium models lead to higher abatement rates for a given price. The flexibility in nitrogen use and its effect on crop yields also plays a significant role in lowering marginal abatement costs. The results of the second step indicate that the price elasticity of the abatement rate is about 0.6. This estimate is found to be robust to several specifications and consistent with previous assessments covering other economic sectors.

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  • Vermont, Bruno & De Cara, Stéphane, 2010. "How costly is mitigation of non-CO2 greenhouse gas emissions from agriculture?: A meta-analysis," Ecological Economics, Elsevier, vol. 69(7), pages 1373-1386, May.
  • Handle: RePEc:eee:ecolec:v:69:y:2010:i:7:p:1373-1386
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    1. Anderson, Blake & M'Gonigle, Michael, 2012. "Does ecological economics have a future?," Ecological Economics, Elsevier, vol. 84(C), pages 37-48.
    2. Krimly, Tatjana & Angenendt, Elisabeth & Bahrs, Enno & Dabbert, Stephan, 2016. "Global warming potential and abatement costs of different peatland management options: A case study for the Pre-alpine Hill and Moorland in Germany," Agricultural Systems, Elsevier, vol. 145(C), pages 1-12.
    3. De Cara, Stéphane & Jayet, Pierre-Alain, 2011. "Marginal abatement costs of greenhouse gas emissions from European agriculture, cost effectiveness, and the EU non-ETS burden sharing agreement," Ecological Economics, Elsevier, vol. 70(9), pages 1680-1690, July.
    4. Stéphane De Cara & Loïc Henry & Pierre-Alain Jayet, 2018. "Optimal coverage of an emission tax in the presence of monitoring, reporting, and verification costs
      [Couverture optimale d'une taxe sur les émissions en présence de coût de contrôle, de rapportage
      ," Post-Print hal-01736839, HAL.
    5. Nigel Key & Gregoire Tallard, 2012. "Mitigating methane emissions from livestock: a global analysis of sectoral policies," Climatic Change, Springer, vol. 112(2), pages 387-414, May.
    6. Amy W. Ando & Shibashis Mukherjee, 2012. "Benefits of pollution monitoring technology for greenhouse gas offset markets," Economics Bulletin, AccessEcon, vol. 32(1), pages 122-136.
    7. 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.
    8. repec:eee:agisys:v:157:y:2017:i:c:p:70-80 is not listed on IDEAS
    9. Li Gao & Xin Wen & Yuntong Guo & Tianming Gao & Yi Wang & Lei Shen, 2014. "Spatiotemporal Variability of Carbon Flux from Different Land Use and Land Cover Changes: A Case Study in Hubei Province, China," Energies, MDPI, Open Access Journal, vol. 7(4), pages 1-19, April.
    10. Roeder, Norbert & Osterburg, Bernhard, 2011. "Reducing GHG Emissions by Abandoning Agricultural Land use on Organic Soils - A Cost Assessment," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 115983, European Association of Agricultural Economists.
    11. Branger, Frédéric & Quirion, Philippe, 2014. "Would border carbon adjustments prevent carbon leakage and heavy industry competitiveness losses? Insights from a meta-analysis of recent economic studies," Ecological Economics, Elsevier, vol. 99(C), pages 29-39.
    12. repec:spr:masfgc:v:23:y:2018:i:3:d:10.1007_s11027-017-9743-2 is not listed on IDEAS
    13. Wang, Wen, 2015. "Intégrer l'agriculture dans les politiques d'atténuation chinoises," Economics Thesis from University Paris Dauphine, Paris Dauphine University, number 123456789/14999 edited by Perthuis, Christian de.
    14. 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.
    15. repec:eee:ecolec:v:147:y:2018:i:c:p:134-154 is not listed on IDEAS
    16. Benjamin Dequiedt & Dominic Moran, 2014. "The cost of emissions mitigation by legume crops in French agriculture," Working Papers 1410, Chaire Economie du climat.
    17. repec:cai:recosp:reco_683_0471 is not listed on IDEAS
    18. Raja Chakir & Stéphane De Cara & Bruno Vermont, 2017. "Price-Induced Changes in Greenhouse Gas Emissions from Agriculture, Forestry, and Other Land Use: A Spatial Panel Econometric Analysis," Revue économique, Presses de Sciences-Po, vol. 68(3), pages 471-490.
    19. Bednar-Friedl, Birgit & Schinko, Thomas & Steininger, Karl W., 2012. "The relevance of process emissions for carbon leakage: A comparison of unilateral climate policy options with and without border carbon adjustment," Energy Economics, Elsevier, vol. 34(S2), pages 168-180.
    20. Breen, James P. & Donnellan, Trevor & Westhoff, Patrick C., 2012. "Reducing Greenhouse Gas Emissions from Irish Agriculture: A market-based approach," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 130555, International Association of Agricultural Economists.
    21. Beach, Robert & Creason, Jared & Ohrel, Sara & Ragnauth, Shaun & Ogle, Stephen & Li, Changsheng & Salas, William, 2015. "Marginal Abatement Cost Curves for Global Agricultural Non-CO2 Emissions," 2015 Conference, August 9-14, 2015, Milan, Italy 211208, International Association of Agricultural Economists.
    22. 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.
    23. Eory, Vera, 2015. "Evaluating the use of marginal abatement cost curves applied to greenhouse gas abatement in agriculture," Working Papers 199777, Scottish Agricultural College, Land Economy Research Group.

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