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The optimal carbon sequestration in agricultural soils : does the dynamics of the physical process matter ?



The Kyoto Protocol, which came in force in February 2005, allows countries to resort to "supplementary activities" consisting particularly in carbon sequestration in agricultural soils. Existing papers studying the optimal carbon sequestration recognize the importance of the temporality of sequestration, but overlook the fact that it is a dissymmetric dynamic process. This paper takes explicitly into account the temporality of sequestration. Its first contribution is technical : we solve an optimal control problem with two stages and a dissymmetric dynamic process. The second contribution is empirical : we show that the error made when sequestration is supposed immediate can be very significant, and we exhibit numerically the optimal path of sequestration /de-sequestration for specific benefit, damage and cost functions, and a calibration that mimics roughly the world conditions.

Suggested Citation

  • Lionel Ragot & Katheline Schubert, 2006. "The optimal carbon sequestration in agricultural soils : does the dynamics of the physical process matter ?," Cahiers de la Maison des Sciences Economiques v06040, Université Panthéon-Sorbonne (Paris 1).
  • Handle: RePEc:mse:wpsorb:v06040

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    References listed on IDEAS

    1. Tomiyama, Ken & Rossana, Robert J., 1989. "Two-stage optimal control problems with an explicit switch point dependence : Optimality criteria and an example of delivery lags and investment," Journal of Economic Dynamics and Control, Elsevier, vol. 13(3), pages 319-337, July.
    2. Feng, Hongli & Zhao, Jinhua & Kling, Catherine L., 2002. "Time Path and Implementation of Carbon Sequestration (The)," Staff General Research Papers Archive 5068, Iowa State University, Department of Economics.
    3. Huseyin cagri SAGLAM, 2002. "Optimal pattern of technology adoption under embodiment with a finite planning horizon : A multi-stage optimal control approach," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2002031, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    4. M. I. Kamien & E. Muller, 1976. "Optimal Control with Integral State Equations," Review of Economic Studies, Oxford University Press, vol. 43(3), pages 469-473.
    5. Tomiyama, Ken, 1985. "Two-stage optimal control problems and optimality conditions," Journal of Economic Dynamics and Control, Elsevier, vol. 9(3), pages 317-337, November.
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    Cited by:

    1. repec:hal:journl:halshs-00674020 is not listed on IDEAS
    2. Camacho, Carmen & Pérez-Barahona, Agustín, 2015. "Land use dynamics and the environment," Journal of Economic Dynamics and Control, Elsevier, vol. 52(C), pages 96-118.
    3. Ayong Le Kama, Alain & Fodha, Mouez & Lafforgue, Gilles, 2009. "Optimal Carbon Capture and Storage Policies," TSE Working Papers 09-095, Toulouse School of Economics (TSE).
    4. Mireille Chiroleu-Assouline & Sebastien Roussel, 2014. "Payments for Carbon Sequestration in Agricultural Soils: Incentives for the Future and Rewards for the Past," CEEES Paper Series CE3S-01/14, European University at St. Petersburg, Department of Economics.
    5. repec:kap:enreec:v:68:y:2017:i:3:d:10.1007_s10640-016-0026-2 is not listed on IDEAS
    6. Alejandro Caparrós & David Zilberman, 2010. "Optimal carbon sequestration path when different biological or physical sequestration," Working Papers 1018, Instituto de Políticas y Bienes Públicos (IPP), CSIC.

    More about this item


    Environment; agriculture; carbon sequestration; Kyoto Protocol; optimal control.;

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment

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