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Community values for the benefits of carbon farming: a choice experiment study

Author

Listed:
  • Massam, G.
  • Kragt, Marit Ellen
  • Burton, Michael P.

Abstract

The Australian Government’s Carbon Farming Initiative provides carbon credit incentives for farmers to encourage climate change mitigation on agricultural land. In addition to carbon sequestration or reduced emissions, carbon farming activities often generate ancillary benefits, such as creation of native habitat or erosion prevention. We conduct a choice experiment study to estimate community values for climate change mitigation, and the ancillary effects of carbon farming. Respondents’ WTP depends on their perceptions of climate change and on age, income and political preferences. Respondents who believe in climate change are willing to pay $7.56 per 1% reduction in Australia’s overall greenhouse gas emissions. Respondents are willing to pay $16.88 per 1% increase in the area of native vegetation on farmland, and $2.89 per 1% reduction in soil erosion. The value estimates will allow for more targeted development of carbon farming policies.

Suggested Citation

  • Massam, G. & Kragt, Marit Ellen & Burton, Michael P., 2013. "Community values for the benefits of carbon farming: a choice experiment study," 2013 Conference (57th), February 5-8, 2013, Sydney, Australia 152167, Australian Agricultural and Resource Economics Society.
    • Handle: RePEc:ags:aare13:152167
    DOI: 10.22004/ag.econ.152167
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    1. Maraseni, T.N. & Cockfield, G., 2011. "Does the adoption of zero tillage reduce greenhouse gas emissions? An assessment for the grains industry in Australia," Agricultural Systems, Elsevier, vol. 104(6), pages 451-458, July.
    2. Uwe A. Schneider & Pete Smith, 2008. "Greenhouse Gas Emission Mitigation and Emission Intensities in Agriculture," Working Papers FNU-164, Research unit Sustainability and Global Change, Hamburg University, revised Jul 2008.
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    Keywords

    Environmental Economics and Policy; Farm Management; International Relations/Trade; Resource /Energy Economics and Policy;
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