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Policies to reduce GHG emissions from agriculture, their implications for agricultural activity levels and land use decisions in Ireland

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  • Rafiee, Zohreh
  • Breen, James
  • Kilcline, Kevin

Abstract

To prevent the most damaging effects of climate change, the Intergovernmental Panel on Climate Change (IPCC) have identified the need to limit the rise in the global average temperature to 1.5°C above pre-industrial levels. In support of the goal of climate change mitigation, Ireland’s Climate Action Plan has set a goal of reducing overall greenhouse gas emissions by 2030 and setting us on a path to reach net-zero emissions by 2050. As part of the plan the agriculture sector has been set of 25% reduction target relative to 2018. This paper utilises the CAPRI model to evaluate the effect of a hypothetical €100 carbon tax on non-CO2 emissions for agricultural. Results revealed that under a €100 carbon tax, overall GHG emissions would decrease in large part due to a decrease in beef meat activities, which is along with the dairy sector the dominant source of methane emissions in Irish agriculture. Average agricultural income would be projected to increase due to less profitable production exiting under carbon tax and price. A significant increase in the area of set aside and fallow land is also observed, which leads to a reduction in agricultural land and can be used for an increase in afforestation.

Suggested Citation

  • Rafiee, Zohreh & Breen, James & Kilcline, Kevin, 2023. "Policies to reduce GHG emissions from agriculture, their implications for agricultural activity levels and land use decisions in Ireland," 97th Annual Conference, March 27-29, 2023, Warwick University, Coventry, UK 334507, Agricultural Economics Society - AES.
    • Handle: RePEc:ags:aesc23:334507
    DOI: 10.22004/ag.econ.334507
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    References listed on IDEAS

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    1. Himics, Mihaly & Fellmann, Thomas & Barreiro-Hurlé, Jesús & Witzke, Heinz-Peter & Pérez Domínguez, Ignacio & Jansson, Torbjörn & Weiss, Franz, 2018. "Does the current trade liberalization agenda contribute to greenhouse gas emission mitigation in agriculture?," Food Policy, Elsevier, vol. 76(C), pages 120-129.
    2. Mihaly Himics & Thomas Fellmann & Jesus Barreiro‐Hurle, 2020. "Setting Climate Action as the Priority for the Common Agricultural Policy: A Simulation Experiment," Journal of Agricultural Economics, Wiley Blackwell, vol. 71(1), pages 50-69, February.
    3. Alexander Gocht & Pavel Ciaian & Maria Bielza & Jean-Michel Terres & Norbert Röder & Mihaly Himics & Guna Salputra, 2017. "EU-wide Economic and Environmental Impacts of CAP Greening with High Spatial and Farm-type Detail," Journal of Agricultural Economics, Wiley Blackwell, vol. 68(3), pages 651-681, September.
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    5. Hayden, Anne & Adenaeuer, Lucie & Jansson, Torbjörn & Höglind, Lisa & Breen, James, 2019. "Possible economic and environmental impacts from changes to the coupled beef support payments for EU beef production," 172nd EAAE Seminar, May 28-29, 2019, Brussels, Belgium 289735, European Association of Agricultural Economists.
    6. Adenaeuer, Lucie & Breen, James & Hayden, Anne, 2021. "Increasing Afforestation in the Irish Agriculture Sector," 95th Annual Conference, March 29-30, 2021, Warwick, UK (Hybrid) 312061, Agricultural Economics Society - AES.
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    Keywords

    Environmental Economics and Policy; Land Economics/Use;

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