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The Potential Supply of Carbon Dioxide Offsets from the Anaerobic Digestion of Dairy Waste in the United States


  • Brent A. Gloy


Anaerobic digestion allows farmers to create renewable energy and significantly reduce manure methane emissions. Estimates of the aggregate supply curve for carbon dioxide (CO 2 ) equivalent offsets from the adoption of anaerobic digestion (AD) were developed based upon dairy farm data collected by the National Agricultural Statistics Service/Economic Research Service Agricultural Resource and Management Survey. The estimated supply curve demonstrates how the supply of CO 2 offsets from AD would be influenced by offset prices. A sensitivity analysis examines how changes in capital and operating costs, as well as energy prices, would influence the supply of offsets. Under a base set of assumptions, offset prices in excess of $15 per ton of CO2 equivalent would be required to reduce methane emissions from manure storages by 50% from 2005 levels. Copyright 2011, Oxford University Press.

Suggested Citation

  • Brent A. Gloy, 2011. "The Potential Supply of Carbon Dioxide Offsets from the Anaerobic Digestion of Dairy Waste in the United States," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 33(1), pages 59-78.
  • Handle: RePEc:oup:apecpp:v:33:y:2011:i:1:p:59-78

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    Cited by:

    1. Boaitey, Albert & Ellen, Goddard, 2016. "Optimal Livestock Management For Improved Environmental Outcomes: How Effective Are Carbon Offset Markets?," 2016 Annual Meeting, July 31-August 2, 2016, Boston, Massachusetts 236010, Agricultural and Applied Economics Association.
    2. Gava, Oriana & Bartolini, Fabio & Brunori, Gianluca, 2015. "Spatial impacts and sustainability of farm biogas diffusion in Italy," 150th Seminar, October 22-23, 2015, Edinburgh, Scotland 212676, European Association of Agricultural Economists.
    3. 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(02), pages 139-157, August.

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