Derived Carbon Credit Values for Carbon Sequestration: Do CO2 Emissions From Production Inputs Matter?
An economic analysis was conducted involving wheat and grain sorghum production systems that affect carbon dioxide emissions and sequester soil carbon. Parameters examined were expected net returns, changes in net carbon sequestered and the value of carbon credits necessary to equate net returns from systems that sequester more carbon to those that sequester less with and without adjustments for CO2 emissions from production inputs. Evaluations were based on experiment station cropping practices, yield, and soil carbon data for continuously cropped and rotated wheat and grain sorghum produced with conventional and no-tillage. No-till had lower net returns because of lower yields and higher overall costs. Both crops produced under no-till had higher annual soil C gains than under conventional tillage. However, no-till systems had higher total atmospheric emissions of C from production inputs. The differences were relatively small. The C values estimated in this study that would equate net returns of no-tillage to conventional tillage range from $7.82 to $58.69/ton/yr when C emissions from production inputs were subtracted from soil carbon sequestered and $7.79 to $54.99/ton/yr when atmospheric emissions were not considered.
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|Date of creation:||Jun 2002|
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- McCarl, Bruce A. & Schneider, Uwe A., 1999. "Curbing Greenhouse Gases: Agriculture's Role," Choices, Agricultural and Applied Economics Association, vol. 14(1).
- Paudel, Krishna P. & Lohr, Luanne, 2000. "Meeting The Kyoto Target Through Conservation Tillage And Its Implication For Natural Capital Maintenance, Production Efficiency, And Sustainability," Series Reports 23812, Auburn University, Department of Agricultural Economics and Rural Sociology.
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