The business case for carbon farming in the USA

Author:

Plastina Alejandro,Jo Haeun,Wongpiyabovorn Oranuch

Abstract

AbstractU.S. agricultural producers are increasingly able to participate in private voluntary carbon initiatives that compensate their efforts to sequester CO2, reduce GHG emissions, and provide ecosystem services through eligible conservation practices. This study examines the potential effects of alternative private payment regimes (per practice vs. per output), prices paid to farmers relative to out-of-pocket costs (low vs. high), and the availability of information on CO2 sequestration (limited vs. full), on the adoption of cover crops and no-till in the United States, the resulting CO2 sequestration, and changes in farmers’ net returns. The analysis relies on a highly stylized model of heterogeneous farms calibrated with county-level agronomic data, and simulated for current estimates of GHG impacts of cover crop planting and no-till under different scenarios. Our results indicate that agricultural carbon markets can be profitable for U.S. farmers, although with substantial geographic variability, and that annual carbon sequestration could range between 17 and 75 million mtCO2e. Payments per output would incentivize higher carbon sequestration than payments per practice, but the former regime would be less favored by farmers as a unified group than the latter (due to lower aggregate net returns). However, if operators of farms with high carbon sequestration potential could decide the payment regime to be implemented, they would choose the payment per output regime (due to higher net returns per enrolled hectare). Total projected net changes in GHGs under payments per practice, based solely on county-average net GHG effects of cover crops and no-till, over-estimate actual total GHG sequestration (based on the entire distribution of net effects by county) by 2.1 and 14.2 million mtCO2e, or 18% and 21%, respectively.

Funder

National Institute of Food and Agriculture

Center for Agricultural and Rural Development, United States

Publisher

Springer Science and Business Media LLC

Cited by 2 articles. 订阅此论文施引文献 订阅此论文施引文献,注册后可以免费订阅5篇论文的施引文献,订阅后可以查看论文全部施引文献

同舟云学术

1.学者识别学者识别

2.学术分析学术分析

3.人才评估人才评估

"同舟云学术"是以全球学者为主线,采集、加工和组织学术论文而形成的新型学术文献查询和分析系统,可以对全球学者进行文献检索和人才价值评估。用户可以通过关注某些学科领域的顶尖人物而持续追踪该领域的学科进展和研究前沿。经过近期的数据扩容,当前同舟云学术共收录了国内外主流学术期刊6万余种,收集的期刊论文及会议论文总量共计约1.5亿篇,并以每天添加12000余篇中外论文的速度递增。我们也可以为用户提供个性化、定制化的学者数据。欢迎来电咨询!咨询电话:010-8811{复制后删除}0370

www.globalauthorid.com

TOP

Copyright © 2019-2024 北京同舟云网络信息技术有限公司
京公网安备11010802033243号  京ICP备18003416号-3