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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

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  • Bernd Lengers

    () (Wissenschaftlicher Mitarbeiter, Institut fur Lebensmittel- und Ressourcenökonomik (ILR), Abt. Ressourcen- und Umweltökonomik, Nussallee 21, 53115 Bonn, Allemagne)

  • Wolfgang Britz

    (Wissenschaftlicher Mitarbeiter, Institut fur Lebensmittel- und Ressourcenökonomik (ILR), Abt. Wirtschafts- und Agrarpolitik)

Abstract

The application of economic instruments to GHG emissions from dairy farms needs to rely on GHG indicators as actual emissions are impossible or extremely costly to measure. The choice of indicator impacts chosen abatement options, related costs and GHG actually emitted. A tool to quantify these relations is proposed which at its core consists of a highly detailed, mixed-integer dynamic programming model template able to cover a wide range of dairy farm characteristics and promising indicators. It allows deriving and comparing marginal abatement costs of GHGs emission for different farm types and indicators, informing the policy process about promising indicators, abatement strategies and related abatement and measurement costs.

Suggested Citation

  • 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.
  • Handle: RePEc:rae:jourae:v:93:y:2012:i:2:p:117-144
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    References listed on IDEAS

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    1. Dominguez, Ignacio Perez & Britz, Wolfgang, 2010. "Greenhouse Gas Emission Trading In European Agriculture: A Comparison Of Different Policy Implementation Options In Year 2020," Proceedings Issues, 2010: Climate Change in World Agriculture: Mitigation, Adaptation, Trade and Food Security, June 2010, Stuttgart- Hohenheim, Germany 91396, International Agricultural Trade Research Consortium.
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    3. Sophie Durandeau & Benoit Gabrielle & Caroline Godard & Pierre-Alain Jayet & Christine Le Bas, 2010. "Coupling biophysical and micro-economic models to assess the effect of mitigation measures on greenhouse gas emissions from agriculture," Post-Print hal-00410001, HAL.
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    5. Stéphane Cara & Martin Houzé & Pierre-Alain Jayet, 2005. "Methane and Nitrous Oxide Emissions from Agriculture in the EU: A Spatial Assessment of Sources and Abatement Costs," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 32(4), pages 551-583, December.
    6. Osterburg, Bernhard & Nieberg, Hiltrud & Röder, Norbert & Isermeyer, Folkhard & Haenel, Hans-Dieter & Hahne, Jochen & Krentler, Jan-Gerd & Paulsen, Hans Marten & Schuchardt, Frank & Schweinle, Jörg & , 2009. "Erfassung, Bewertung und Minderung von Treibhausgasemissionen des deutschen Agrar- und Ernährungssektors: Studie im Auftrag des Bundesministeriums für Ernährung, Landwirtschaft und Verbraucherschutz," Arbeitsberichte aus der vTI-Agrarökonomie 03/2009, Johann Heinrich von Thünen Institute, Federal Research Institute for Rural Areas, Forestry and Fisheries.
    7. Huirne, R. B. M. & Dijkhuizen, A. A. & van Beek, P. & Hendriks, Th. H. B., 1993. "Stochastic dynamic programming to support sow replacement decisions," European Journal of Operational Research, Elsevier, vol. 67(2), pages 161-171, June.
    8. de Cara, Stephane & Jayet, Pierre-Alain, 2001. "Agriculture And Climate Change In The Eu: Greenhouse Gas Emissions And Abatement Costs," 2001 Annual meeting, August 5-8, Chicago, IL 20577, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
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    Cited by:

    1. Viaggi, Davide & Raggi, Meri & Gomez y Paloma, Sergio, 2011. "Farm-household investment behaviour and the CAP decoupling: Methodological issues in assessing policy impacts," Journal of Policy Modeling, Elsevier, vol. 33(1), pages 127-145, January.
    2. 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), issue 1, April.
    3. Remble, Amber & Britz, Wolfgang & Keeney, Roman, 2013. "Farm Level Tradeoffs in the Regulation of Greenhouse Gas Emissions," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150442, Agricultural and Applied Economics Association.
    4. Garbert, Johanna & Holm-Mueller, Karin, 2015. "Impacts of policies to implement the EU Water Framework Directive on development strategies and income of typical pig farms in an intensively farmed region of Germany," Discussion Papers 206384, University of Bonn, Institute for Food and Resource Economics.
    5. 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.
    6. Carpentier, Alain & Gohin, Alexandre & Sckokai, Paolo & Thomas, Alban, 2015. "Economic modelling of agricultural production: past advances and new challenges," Revue d'Etudes en Agriculture et Environnement, Editions NecPlus, vol. 96(01), pages 131-165, March.
    7. Britz, Wolfgang, 2014. "A New Graphical User Interface Generator for Economic Models and its Comparison to Existing Approaches," Journal of International Agricultural Trade and Development, Journal of International Agricultural Trade and Development, vol. 63(4).
    8. 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.

    More about this item

    Keywords

    marginal abatement costs; emission indicators; dynamic mixed integer programming; greenhouse gas emissions;

    JEL classification:

    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects

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