Agriculture and the clean development mechanism
Many experts believe that low-cost mitigation opportunities in agriculture are abundant and comparable in scale to those found in the energy sector. They are mostly located in developing countries and have to do with how land is used. By investing in projects under the Clean Development Mechanism (CDM), countries can tap these opportunities to meet their own Kyoto Protocol obligations. The CDM has been successful in financing some types of agricultural projects, including projects that capture methane or use agricultural by-products as an energy source. But agricultural land-use projects are scarce under the CDM. This represents a missed opportunity to promote sustainable rural development since land-use projects that sequester carbon in soils can help reverse declining soil fertility, a root cause of stagnant agricultural productivity. This paper reviews the process leading to current CDM implementation rules and describes how the rules, in combination with challenging features of land-use projects, raise transaction costs and lower demand for land-use credits. Procedures by which developed countries assess their own mitigation performance are discussed as a way of redressing current constraints on CDM investments. Nevertheless, even with improvements to the CDM, an under-investment in agricultural land-use projects is likely, since there are hurdles to capturing associated ancillary benefits privately. Alternative approaches outside the CDM are discussed, including those that build on recent decisions taken by governments in Copenhagen and Cancun.
|Date of creation:||01 Apr 2011|
|Contact details of provider:|| Postal: 1818 H Street, N.W., Washington, DC 20433|
Phone: (202) 477-1234
Web page: http://www.worldbank.org/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Weber, Thomas A. & Neuhoff, Karsten, 2010.
"Carbon markets and technological innovation,"
Journal of Environmental Economics and Management,
Elsevier, vol. 60(2), pages 115-132, September.
- Weber, T.A. & Neuhoff, K., 2009. "Carbon Markets and Technological Innovation," Cambridge Working Papers in Economics 0932, Faculty of Economics, University of Cambridge.
- Marenya, Paswel P. & Barrett, Christopher B., 2007. "Household-level determinants of adoption of improved natural resources management practices among smallholder farmers in western Kenya," Food Policy, Elsevier, vol. 32(4), pages 515-536, August.
- Jonathan A. Cook & Owen Cylke & Donald F. Larson & Pamela Stedman-Edwards & John D. Nash, 2010. "Trade Liberalization, Rural Poverty and the Environment," Chapters, in: Vulnerable Places, Vulnerable People, chapter 1 Edward Elgar Publishing.
- Marc N. Conte & Matthew J. Kotchen, 2009. "Explaining the Price of Voluntary Carbon Offsets," NBER Working Papers 15294, National Bureau of Economic Research, Inc.
- Antle, John & Capalbo, Susan & Mooney, Sian & Elliott, Edward & Paustian, Keith, 2003. "Spatial heterogeneity, contract design, and the efficiency of carbon sequestration policies for agriculture," Journal of Environmental Economics and Management, Elsevier, vol. 46(2), pages 231-250, September.
- Pagiola, Stefano & Arcenas, Agustin & Platais, Gunars, 2005. "Can Payments for Environmental Services Help Reduce Poverty? An Exploration of the Issues and the Evidence to Date from Latin America," World Development, Elsevier, vol. 33(2), pages 237-253, February.
- Jean-Marc Burniaux & Joaquim Oliveira Martins, 2000. "Carbon Emission Leakages: A General Equilibrium View," OECD Economics Department Working Papers 242, OECD Publishing.
- Hunt, Colin, 2008. "Economy and ecology of emerging markets and credits for bio-sequestered carbon on private land in tropical Australia," Ecological Economics, Elsevier, vol. 66(2-3), pages 309-318, June.
- Oscar Cacho & Leslie Lipper, 2006. "Abatement and Transaction Costs of Carbon-Sink Projects Involving Smallholders," Working Papers 06-13, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA).
- Oscar Cacho & Leslie Lipper, 2007. "Abatement and Transaction Costs of Carbon-Sink Projects Involving Smallholders," Working Papers 2007.27, Fondazione Eni Enrico Mattei.
- Patrick Matschoss & Heinz Welsch, 2006. "International Emissions Trading and Induced Carbon-Saving Technological Change: Effects of Restricting the Trade in Carbon Rights," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 33(2), pages 169-198, 02.
- Larson, Donald F. & Ambrosi, Philippe & Dinar, Ariel & Rahman, Shaikh Mahfuzur & Entler, Rebecca, 2008. "A Review of Carbon Market Policies and Research," International Review of Environmental and Resource Economics, now publishers, vol. 2(3), pages 177-236, November.
- Claudio Forneri & Jürgen Blaser & Frank Jotzo & Carmenza Robledo, 2006. "Keeping the forest for the climate's sake: avoiding deforestation in developing countries under the UNFCCC," Climate Policy, Taylor & Francis Journals, vol. 6(3), pages 275-294, May.
- Larson, Donald F. & Breustedt, Gunnar, 2007. "Will markets direct investments under the Kyoto Protocol ?," Policy Research Working Paper Series 4131, The World Bank.
- González-Estrada, Ernesto & Rodriguez, Luis C. & Walen, Valerie K. & Naab, Jesse B. & Koo, Jawoo & Jones, James W. & Herrero, Mario & Thornton, Philip K., 2008. "Carbon sequestration and farm income in West Africa: Identifying best management practices for smallholder agricultural systems in northern Ghana," Ecological Economics, Elsevier, vol. 67(3), pages 492-502, October.
- John M. Antle & Bocar Diagana, 2003. "Creating Incentives for the Adoption of Sustainable Agricultural Practices in Developing Countries: The Role of Soil Carbon Sequestration," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(5), pages 1178-1184.
- Larson, Donald F. & Plessmann, Frank, 2009. "Do farmers choose to be inefficient? Evidence from Bicol," Journal of Development Economics, Elsevier, vol. 90(1), pages 24-32, September.
- Graff-Zivin, Joshua & Lipper, Leslie, 2008. "Poverty, risk, and the supply of soil carbon sequestration," Environment and Development Economics, Cambridge University Press, vol. 13(03), pages 353-373, June.
- Zerfu, Daniel & Larson, Donald F., 2010. "Incomplete markets and fertilizer use : evidence from Ethiopia," Policy Research Working Paper Series 5235, The World Bank.
- Wunder, Sven & Engel, Stefanie & Pagiola, Stefano, 2008. "Taking stock: A comparative analysis of payments for environmental services programs in developed and developing countries," Ecological Economics, Elsevier, vol. 65(4), pages 834-852, May.
- Antle, John M. & Capalbo, Susan Marie, 2002. "Agriculture As A Managed Ecosystem: Policy Implications," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 27(01), July. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:5621. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Roula I. Yazigi)
If references are entirely missing, you can add them using this form.