Carbon offsets and agriculture: Options, obstacles, and opinions

Author:

van Kooten G. Cornelis1ORCID,Zanello Rebecca2

Affiliation:

1. Department of Economics University of Victoria, Victoria, BC and School of Business, Trinity Western University Langley BC Canada

2. Department of Agricultural & Resource Economics University of Saskatchewan Saskatoon Canada

Abstract

AbstractWhile carbon offsets in agriculture can play a role in addressing climate change, they are not a perfect substitute for direct emission reductions. As shown in this paper through various arguments and case studies, climate policies in Canada have avoided the use of offsets to be sold in carbon markets, preferring instead to incentivize adoption of best management practices (BMPs) that provide environmental benefits along with climate mitigation benefits. We argue that this is a preferred policy option due to the perils and pitfalls inherent in the measurement and monitoring required to identify offset credits. While an appropriate approach might be to penalize Canadian farmers for any emissions their activities cause, this may do more harm than good. Canadian agricultural production is highly efficient and technologically advanced; therefore, reductions in Canada's contribution to the global food supply will result in less‐efficient production occurring elsewhere (i.e., leakage) that increases global greenhouse gas emissions.

Publisher

Wiley

Subject

Economics and Econometrics,Agronomy and Crop Science,Animal Science and Zoology,Ecology,Global and Planetary Change

Reference50 articles.

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2. AAFC (Agriculture and Agri‐Food Canada). (2023b).What we heard report—Fertilizer emissions reduction. July 20.https://agriculture.canada.ca/en/department/transparency/public‐opinion‐research‐consultations/share‐ideas‐fertilizer‐emissions‐reduction‐target/what‐we‐heard‐report‐fertilizer‐emissions‐reduction[accessed October 10 2023]. 

3. AAFC (Agriculture and Agri‐Food Canada). (2023c).Agriculture Climate Solutions—On‐Farm Climate Action Fund.https://agriculture.canada.ca/en/programs/agricultural‐climate‐solutions‐farm‐climate‐action‐fund[accessed August 23 2023]. 

4. AAFC (Agriculture and Agri‐Food Canada). (2023d).Agriculture Climate Solutions—On‐Farm Climate Action Fund.https://agriculture.canada.ca/en/programs/agricultural‐climate‐solutions‐farm‐climate‐action‐fund[accessed August 23 2023]. 

5. AAFC (Agriculture and Agri‐Food Canada). (2023e).Research Projects: Current Research Projects by Province.https://agriculture.canada.ca/en/science/research‐projects#dataset‐filter[accessed August 23 2023]. 

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