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Trading schemes for greenhouse gas emissions from European agriculture: A comparative analysis based on different implementation options

Author

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  • Ignacio Pérez Domínguez

    (Agricultural Economics Research Institute (LEI), Alexanderveld 5, 2585DB, The Hague, Netherlands)

  • Wolfgang Britz

    (Institute for Food and Resource Economics, University of Bonn, Bonn, Germany)

  • Karin Holm-Müller

    (Institute for Food and Resource Economics, University of Bonn, Bonn, Germany)

Abstract

A rational negotiation strategy for coming multilateral negotiations regarding climate change requires knowledge about possible social, economic and environmental effects of policy instruments for the abatement of greenhouse gas emissions. With this purpose, an agricultural sector model is expanded to cover greenhouse gas emissions from agricultural sources in Europe and policy instruments for their reduction. This modelling approach concentrates on the application of a permit trade scheme for emission abatement within the Kyoto Protocol ‘first commitment’ baseline. The effects derived of three alternative schemes are described in detail: the EU ‘burden sharing’ agreement option defined as regional emission standards, emission trading between regions inside each Member State, and finally, emission trading between all European regions. The analysis shows the importance of selecting an adequate combination of instruments of emission abatement for the design of efficient emission reduction policies.

Suggested Citation

  • Ignacio Pérez Domínguez & Wolfgang Britz & Karin Holm-Müller, 2009. "Trading schemes for greenhouse gas emissions from European agriculture: A comparative analysis based on different implementation options," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement, INRA Department of Economics, vol. 90(3), pages 287-308.
    • Handle: RePEc:rae:jourae:v:90:y:2009:i:3:p:287-308
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    Cited by:

    1. 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.
    2. Ignacio Pérez Domínguez & Thomas Fellmann & Franz Weiss & Peter Witzke & Jesús Barreiro-Hurlé & Mihaly Himics & Torbjörn Jansson & Guna Salputra & Adrian Leip, 2016. "An economic assessment of GHG mitigation policy options for EU agriculture (EcAMPA 2)," JRC Research Reports JRC101396, Joint Research Centre.
    3. Coderoni, Silvia & Esposti, Roberto, 2014. "The evolution of agricultural GHG emissions in Italy and the role of the CAP A farm-level assessment," 2014 Third Congress, June 25-27, 2014, Alghero, Italy 173012, Italian Association of Agricultural and Applied Economics (AIEAA).
    4. 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.
    5. Ignacio Perez Dominguez & Thomas Fellmann, 2018. "PESETA III: Agro-economic analysis of climate change impacts in Europe," JRC Research Reports JRC113743, Joint Research Centre.
    6. Ewa Kiryluk-Dryjska & Agnieszka Baer-Nawrocka, 2021. "Regional Differences in Benefits from the EU Common Agricultural Policy in Poland and Their Policy Implications," Agriculture, MDPI, vol. 11(4), pages 1-14, March.
    7. Coderoni, Silvia & Esposti, Roberto, 2017. "CAP Payments And Agricultural GHG Emissions In Italy. A Farm-level Assessment," 2017 International Congress, August 28-September 1, 2017, Parma, Italy 260905, European Association of Agricultural Economists.
    8. Raja Chakir & Stéphane De Cara & Bruno Vermont, 2011. "Émissions de gaz à effet de serre dues à l’agriculture et aux usages des sols en France : une analyse spatiale," Économie et Statistique, Programme National Persée, vol. 444(1), pages 201-221.
    9. Barreiro-Hurle, Jesus & Perez-Dominguez, Ignacio & Jansson, Torbjoern & Fellman, Thomas & Weiss, Franz, 2016. "The role of technology in avoiding leakage from unilateral mitigation targets in agriculture: the case of the EU," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235079, Agricultural and Applied Economics Association.
    10. Dominguez, Ignacio Perez & Britz, Wolfgang, 2010. "Greenhouse Gas Emission Trading In European Agriculture: A Comparison Of Different Policy Implementation Options In Year 2020," 2010: Climate Change in World Agriculture: Mitigation, Adaptation, Trade and Food Security, June 2010, Stuttgart-Hohenheim, Germany 91396, International Agricultural Trade Research Consortium.
    11. Fellmann, Thomas & Dominguez, Ignacio Perez & Witzke, Heinz Peter & Oudendag, Diti, 2012. "Mitigating GHG emissions from EU agriculture– what difference does the policy make?," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126815, International Association of Agricultural Economists.
    12. Camelia Burja, 2012. "Greenhouse Gas Emissions From Agriculture: A Comparative Analysis Between Countries That Recently Joined The Eu," Annales Universitatis Apulensis Series Oeconomica, Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia, vol. 2(14), pages 1-25.
    13. Hans van Meijl & Petr Havlik & Hermann Lotze-Campen & Elke Stehfest & Peter Witzke & Ignacio Perez Dominguez & Benjamin Bodirsky & Michiel van Dijk & Jonathan Doelman & Thomas Fellmann & Florian Humpe, 2017. "Challenges of Global Agriculture in a Climate Change Context by 2050 (AgCLIM50)," JRC Research Reports JRC106835, Joint Research Centre.
    14. 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.
    15. Kreft, Cordelia & Huber, Robert & Wuepper, David & Finger, Robert, 2021. "The role of non-cognitive skills in farmers' adoption of climate change mitigation measures," Ecological Economics, Elsevier, vol. 189(C).
    16. Ewa Kiryluk-Dryjska & Agnieszka Baer-Nawrocka & Obinna Okereke, 2022. "The Environmental and Climatic CAP Measures in Poland vs. Farmers’ Expectations—Regional Analysis," Energies, MDPI, vol. 15(13), pages 1-13, June.
    17. Kahil, Mohamed Taher & Albiac, José, 2013. "Greenhouse gases mitigation policies in the agriculture of Aragon, Spain," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 2(01), pages 1-24, April.
    18. Garnache, Cloe & Merel, Pierre R., 2011. "Calibrating a regional PMP model of agricultural supply under multiple constraints: a set of matryoshka doll conditions," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114630, European Association of Agricultural Economists.
    19. Kiryluk-Dryjska, Ewa & Baer-Nawrocka, Agnieszka, 2019. "Reforms of the Common Agricultural Policy of the EU: Expected results and their social acceptance," Journal of Policy Modeling, Elsevier, vol. 41(4), pages 607-622.
    20. Torbjörn Jansson & Sarah Säll, 2018. "Environmental Consumption Taxes On Animal Food Products To Mitigate Greenhouse Gas Emissions From The European Union," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 9(04), pages 1-16, November.
    21. 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.
    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.

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    More about this item

    Keywords

    Kyoto Protocol; agricultural policy; economic modelling; tradable emission permits;
    All these keywords.

    JEL classification:

    • C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Statistical Simulation Methods: General
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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