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Greenhouse Gas Abatement Policies and the Value of Carbon Sinks: Do Grazing and Cropping Systems have Different Destinies?

  • Flugge, Felicity
  • Schilizzi, Steven
Registered author(s):

    The impact of two greenhouse gas abatement policies on two Mediterranean-type farming systems, grazing dominant and cropping dominant, is examined. The policies analysed are; an emissions taxation policy and an emissions restrictions policy. For both farming systems the restriction policy is found to be more effective and economically efficient than the carbon permit policy. Absolute cost of abatement is less for the livestock dominant system but relative cost is greater, because of lower total farm profits. The analysis found that at predicted emissions permit prices, trees, if credited as a carbon sink, would be adopted by both farming systems to offset farm greenhouse gas emissions.

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    File URL: http://purl.umn.edu/57865
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    Paper provided by Australian Agricultural and Resource Economics Society in its series 2003 Conference (47th), February 12-14, 2003, Fremantle, Australia with number 57865.

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    Date of creation: Feb 2003
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    Handle: RePEc:ags:aare03:57865
    Contact details of provider: Postal: AARES Central Office Manager, Crawford School of Public Policy, ANU, Canberra ACT 0200
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    1. Kingwell, R., 2002. "Sheep animal welfare in a low rainfall Mediterranean environment: a profitable investment?," Agricultural Systems, Elsevier, vol. 74(2), pages 221-240, November.
    2. George, R. J. & Nulsen, R. A. & Ferdowsian, R. & Raper, G. P., 1999. "Interactions between trees and groundwaters in recharge and discharge areas - A survey of Western Australian sites," Agricultural Water Management, Elsevier, vol. 39(2-3), pages 91-113, February.
    3. Bathgate, Andrew & Pannell, David J., 2002. "Economics of deep-rooted perennials in western Australia," Agricultural Water Management, Elsevier, vol. 53(1-3), pages 117-132, February.
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