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Agriculture Afforestation for Carbon Sequestration Under Carbon Markets in the United States: Leakage Behavior from Regional Allowance Programs

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  • David Haim
  • Eric M. White
  • Ralph J. Alig

Abstract

This study quantifies how leakage behavior from afforesting agricultural land affects the intensification of agricultural production. In particular, we examine the leakage percentage from carbon offset allowance at specific southern regions in the United States as a part of a carbon market. We use the Forest and Agriculture Sector Optimization Model-Greenhouse Gases model to examine responses between sectors as part of the regional afforestation policy analysis. Regional characteristics and a policy's time frame are found to play important roles in achieving net gains, in terms of greenhouse gases stored, from such regional policies. In some cases, however, leakage greater than 100% is evident.

Suggested Citation

  • David Haim & Eric M. White & Ralph J. Alig, 2016. "Agriculture Afforestation for Carbon Sequestration Under Carbon Markets in the United States: Leakage Behavior from Regional Allowance Programs," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 38(1), pages 132-151.
    • Handle: RePEc:oup:apecpp:v:38:y:2016:i:1:p:132-151.
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    File URL: http://hdl.handle.net/10.1093/aepp/ppv010
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    Cited by:

    1. Oranuch Wongpiyabovorn & Alejandro Plastina & John M. Crespi, 2021. "US Agriculture as a Carbon Sink: From International Agreements to Farm Incentives," Center for Agricultural and Rural Development (CARD) Publications 21-wp627, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    2. Stevens, Andrew W., 2018. "Review: The economics of soil health," Food Policy, Elsevier, vol. 80(C), pages 1-9.
    3. Omoyemeh J. Ile & Hanna McCormick & Sheila Skrabacz & Shamik Bhattacharya & Maricar Aguilos & Henrique D. R. Carvalho & Joshua Idassi & Justin Baker & Joshua L. Heitman & John S. King, 2022. "Integrating Short Rotation Woody Crops into Conventional Agricultural Practices in the Southeastern United States: A Review," Land, MDPI, vol. 12(1), pages 1-26, December.

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