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Greenhouse gas emissions charges and credits on agricultural land: what can a model tell us?

Author

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  • Hendy, Joanna
  • Kerr, Suzi
  • Baisden, Troy

Abstract

Using the simulation model Land Use in Rural New Zealand version 1 - climate (LURNZv1-climate), we simulate the effects of an agricultural land-use emissions charge and a reward for native forest and scrub regeneration. Our results are preliminary and at this stage should be considered illustrative. We find that, on its own, an agricultural emissions charge based on solely on land use would be disruptive and may not be very effective in reducing emissions. In addition, we find that including an additional policy that rewards regenerating forest and scrub without a similar reward for plantation forestry might negatively impact on plantation forestry, increasing emissions growth in the short-run. We are currently developing a second version of LURNZ-climate, which will be more robust and thus lend more weight to our future results.

Suggested Citation

  • Hendy, Joanna & Kerr, Suzi & Baisden, Troy, 2006. "Greenhouse gas emissions charges and credits on agricultural land: what can a model tell us?," Motu Working Papers 292861, Motu Economic and Public Policy Research.
    • Handle: RePEc:ags:motuwp:292861
    DOI: 10.22004/ag.econ.292861
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    Cited by:

    1. is not listed on IDEAS
    2. Adam Daigneault & Suzie Greenhalgh & Oshadhi Samarasinghe, 2018. "Economic Impacts of Multiple Agro-Environmental Policies on New Zealand Land Use," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 69(4), pages 763-785, April.
    3. Daigneault, Adam J. & Greenhalgh, Suzie & Samarasinghe, Oshadhi, "undated". "Economic and environmental impacts of implementing multiple agro-environmental policies in New Zealand," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 149729, Agricultural and Applied Economics Association.
    4. Daigneault, Adam J. & Greenhalgh, Suzie & Samarasinghe, Oshadhi, 2012. "Economic Impacts of GHG and Nutrient Reduction Policies in New Zealand: A Tale of Two Catchments," 2012 Conference (56th), February 7-10, 2012, Fremantle, Australia 124284, Australian Agricultural and Resource Economics Society.
    5. Lennox, James A. & Andrew, Robbie & Forgie, V., 2008. "Price effects of an emissions trading scheme in New Zealand," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6678, European Association of Agricultural Economists.

    More about this item

    Keywords

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    JEL classification:

    • Q24 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Land
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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