Harvesting the Greenhouse through Altered Land Management: Economic Potential and Market Design Challenges
Uwe A. Schneider, Bruce A. McCarl, Richard Woodward
December 2001 [01-WP 288]
Schneider, U.A., B. McCarl, and R. Woodward. 2001. "Harvesting the Greenhouse through Altered Land Management: Economic Potential and Market Design Challenges." Working paper 01-WP 288. Center for Agricultural and Rural Development, Iowa State University.
An Agricultural Sector Model is used to determine the economic potential of agricultural greenhouse gas emission reduction strategies within hypothetical emission mitigation markets. For a complete set of agricultural land management decisions, emissions and emission reductions of carbon dioxide, methane, and nitrous oxide are accounted for and simultaneously subjected to a wide range of carbon prices. The estimated, competitive emission abatement supply functions for major agricultural strategies are contrasted with two other commonly used measures of abatement potential: single strategy economic potential and technical potential. Specific agricultural production and market characteristics that further impact agriculture's mitigation potential are discussed.