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Carbon Sequestration in Agriculture: Value and Implementation

Author

Listed:
  • Feng, Hongli
  • Zhao, Jinhua
  • Kling, Catherine L.

Abstract

We investigate the value of carbon sequestration in a dynamic model, demonstrating that it is only a fraction of the value of emission abatement unless the sequestration, the natural decay rate of carbon and the discount rate. We also show that to optimally reduce the carbon stock, sinks should be utilized as early as possible. Further, we propose and assess three mechanisms to efficiently introduce sequestration into a carbon permit trading market, a pay-as-you-go system. We show that, although the three mechanisms may not be equally feasible to implement, they are all efficient.

Suggested Citation

  • Feng, Hongli & Zhao, Jinhua & Kling, Catherine L., 2000. "Carbon Sequestration in Agriculture: Value and Implementation," Hebrew University of Jerusalem Archive 18380, Hebrew University of Jerusalem.
    • Handle: RePEc:ags:hebarc:18380
    DOI: 10.22004/ag.econ.18380
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    File URL: https://ageconsearch.umn.edu/record/18380/files/wp000256.pdf
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    2. Majeed, Fahd & Khanna, Madhu & Miao, Ruiqing & Blanc, Elena & Hudiburg, Tara & DeLucia, Evan, 2020. "Designing payments for GHG mitigation to induce low carbon bioenergy production," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304394, Agricultural and Applied Economics Association.
    3. Antle, John M. & Capalbo, Susan Marie & Mooney, Sian & Elliott, Edward T. & Paustian, Keith H., 2001. "Economic Analysis Of Agricultural Soil Carbon Sequestration: An Integrated Assessment Approach," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 26(2), pages 1-24, December.
    4. Hongli Feng & Jinhua Zhao & Catherine L. Kling, 2000. "Towards Implementing Carbon Markets in Agriculture," Center for Agricultural and Rural Development (CARD) Publications 00-wp261, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    5. 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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