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Harvesting the Greenhouse through Altered Land Management: Economic Potential and Market Design Challenges

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  • Schneider, Uwe A.
  • McCarl, Bruce A.
  • Woodward, Richard T.

Abstract

An Agricultural Sector Model is used to determine the economic potential of agricultural greenhouse gas emission reduction strategies within hypothetical emission mitigation markets. For a complete set of agricultural land management decisions, emissions and emission reductions of carbon dioxide, methane, and nitrous oxide are accounted for and simultaneously subjected to a wide range of carbon prices. The estimated, competitive emission abatement supply functions for major agricultural strategies are contrasted with two other commonly used measures of abatement potential: single strategy economic potential and technical potential. Specific agricultural production and market characteristics that further impact agriculture's mitigation potential are discussed.

Suggested Citation

Handle: RePEc:ags:hebarc:18538
DOI: 10.22004/ag.econ.18538
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