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Price-induced changes in greenhouse gas emissions from agriculture, forestry, and other land use: A spatial panel econometric analysis

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  • Chakir, Raja
  • De Cara, Stéphane
  • Vermont, Bruno

Abstract

This paper provides a quantitative assessment of the effects of input and output prices on French GHG emissions from agriculture, forestry and other land use (AFOLU) at the NUTS2 level. Reduced-form, random-effect spatial error models are estimated for four emissions categories (nitrogen use, manure management, enteric fermentation, and land use, land-use change and forestry) in order to account for both spatial autocorrelation and spatial unobserved heterogeneity. The main findings are: (i) price impacts on emission levels are found to be significant, although sign and magnitude vary from one emission category to the other, (ii) estimated price effects are more apparent when emission categories are analyzed separately rather than aggregated, and (iii) the spatial dimension is found to play an important role. The estimated models are then used to simulate the effects of a doubling of crop prices on AFOLU emissions. The results indicate that this would lead to an 11%-increase in agricultural sources.

Suggested Citation

  • Chakir, Raja & De Cara, Stéphane & Vermont, Bruno, 2014. "Price-induced changes in greenhouse gas emissions from agriculture, forestry, and other land use: A spatial panel econometric analysis," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182770, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae14:182770
    DOI: 10.22004/ag.econ.182770
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    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.
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    3. 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.
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    Cited by:

    1. Maxence Gérard & Stéphane De Cara & Guy Meunier, 2025. "Mitigating greenhouse gas emissions from the cattle sector: Land‐use regulation as an alternative to emissions pricing," American Journal of Agricultural Economics, John Wiley & Sons, vol. 107(1), pages 312-345, January.
    2. Meng-Shiuh Chang & Chih-Chun Kung, 2018. "The greenhouse gas impact of bioenergy in developing economies: Evidence from Taiwan," Energy & Environment, , vol. 29(3), pages 315-332, May.
    3. Lina Liu & Jiansheng Qu & Feng Gao & Tek Narayan Maraseni & Shaojian Wang & Suman Aryal & Zhenhua Zhang & Rong Wu, 2024. "Land Use Carbon Emissions or Sink: Research Characteristics, Hotspots and Future Perspectives," Land, MDPI, vol. 13(3), pages 1-24, February.

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    Keywords

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    JEL classification:

    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models

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