Siân Mooney

Spatial heterogeneity, contract design, and the efficiency of carbon sequestration policies for agriculture

Abstract In this paper we develop methods to investigate the efficiency of alternative contracts for Carbon (C) sequestration in cropland soils, taking into account the spatial heterogeneity of agricultural production systems and the costs of implementing more efficient contracts. We describe contracts being proposed for implementation in the United States and other countries that would pay farmers for adoption of specified practices (per-hectare contracts). We also describe more efficient contracts that would pay farmers per tonne of soil C sequestered, and we show how to estimate the costs of implementing these more efficient contracts. In a case study of a major agricultural region in the United States, we confirm that the relative inefficiency of per-hectare contracts varies spatially and increases with the degree of spatial heterogeneity. The results also show that per-hectare contracts are as much as five times more costly than per-tonne contracts—a degree of inefficiency similar to that found in assessments of command-and-control industrial emissions regulations. Measurement costs to implement the per-tonne contracts are found to be positively related to spatial heterogeneity but are estimated to be at least an order of magnitude smaller than the efficiency losses of the per-hectare contract for reasonable error levels. This finding implies that contracting parties could afford to bear a significant cost to implement per-tonne contracts and achieve a lower total cost than would be possible with the less efficient per-hectare contracts.

Research Needs for Understanding and Predicting the Behavior of Managed Ecosystems: Lessons from the Study of Agroecosystems

Managed ecosystems are complex, dynamic systems with spatially varying inputs and outputs that are the result of interrelated physical, biological, and human decision-making processes. To gain an adequate understanding of these systems and predict their behavior, we believe that it is necessary to move beyond stylized theoretical models and loosely coupled disciplinary simulation models to what we describe as “fully integrated models.” Herein we present a conceptual framework for a more integrated approach to the study of managed ecosystems using the example of agricultural ecosystems. We then propose the implementation of a research agenda that fosters coordinated disciplinary research aimed at a better understanding and quantification of linkages across disciplinary models. Key research issues include the effects of spatial scale, the assessment of uncertainty in coupled models, and methods for collecting and analyzing spatially referenced data.

Sensitivity of carbon sequestration costs to soil carbon rates

Modifying current agricultural management practices as a means of sequestering carbon has been shown to be a relatively low cost way to offset greenhouse gas emissions. In this paper we examine the sensitivity of the estimates of the amount of soil carbon sequestered and the implied costs of sequestering a tonne of carbon to changes in the rates of soil carbon sequestered for alternative production practices. An application is made to the dryland grain production systems of the US Northern Plains where the marginal costs of soil C range from

A comparative examination of the efficiency of sequestering carbon in US agricultural soils

20 to

Can Ranchers Slow Climate Change

100 per MT. We show that the resulting changes in the marginal costs quantities of C sequestered are not a monotonic transformation of the changes in the soil carbon rates. These results underscore the importance of using a linked economic and biophysical simulation model to assess the economic potential for sequestering carbon in agricultural soils.

What is the carbon market: Is there a final answer?

This paper demonstrates the need to integrate biophysical and economic data to assess the competitiveness of US agriculture to provide soil carbon (C) and participate in a market for C credits. The paper discusses alternative methods of calculating the costs of soil C sequestration and compares the cost of sequestering soil C in Iowa and Montana. Results indicate that the opportunity cost per Mg of sequestered C varies in response to regional resource endowments and net returns. Economic models show that Montana could sequester a relatively small amount of soil C annually at a lower opportunity cost per Mg than Iowa, but Iowa can sequester larger quantities more efficiently. These results are compared with estimates of the cost of C sequestration from other domestic and international studies, and suggest that US agriculture could be competitive in domestic or international markets for C reduction credits.

Nuclear accidents, impact assessment, and disaster administration: post-chernobyl insights for agriculture in Canada

Carbon credits can be created on rangelands at costs that are competitive with credits from cropland and forestry, revealing that ranchers could play a role in reducing climate change. DOI:10.2458/azu_rangelands_v26i4_campbell

Climate change and US agriculture: Opportunities for conservation to reduce and mitigate emissions and to support adaptation to rapid change

The potential for sequestering carbon in agricultural and forestry sinks to generate carbon credits has received increased attention by legislative bodies, government and nongovernment organizations, private firms, farm managers, and universities over the last few years. This increased interest is primarily due to international regulation of greenhouse gas (GHG) emissions under the Kyoto Protocol. Although the United States has not ratified the Kyoto Protocol, a voluntary market and many state and regional initiatives have been developed to reduce atmospheric concentrations of GHGs. In addition, recent legislation proposed within the United States promotes a cap-and-trade system for reducing GHGs (Pew Center 2008; RFF 2008). Since our first examination of fledging carbon credit markets and factors affecting them (Williams et al. 2005), many new markets have developed, as well as new opportunities to reduce GHG emissions. Several countries have developed GHG markets to help meet their mandatory GHG reductions under the Kyoto Protocol or other regulations. In addition, voluntary markets have formed outside the regulatory constraints to serve businesses interested in trading carbon credits, and there are a number of carbon offset providers that sell offsets to consumers and businesses. Table 1 summarizes the main market types that exist at present. The…

Multidisciplinary Research: Implications for Agricultural and Applied Economists

Abstract Although administrative procedures dealing with direct human health risks arising from a nuclear accident are in place in Canada, little thought has apparently been given to the administration of disaster policies when agricultural land would be affected. Evidence now emerging from Europe in the wake of Chernobyl suggests that major costs can arise from the disruption of agricultural production. The design and administration of the disaster policy can significantly affect the short-term costs associated with such a nuclear accident as well as the long-term productivity of the agricultural resource base. A specific case from the British Chernobyl experience is presented by way of example. Given the large amounts of data now becoming available from Europe, formal Canadian planning should be undertaken. As ultimate responsibility for compensation lies with the federal government, formal planning could provide for considerable savings to Canadian taxpayers in the event of a nuclear accident.

Design and Costs of a Measurement Protocol for Trades in Soil Carbon Credits

A rapidly changing climate can have profound consequences on agriculture and rural communities (Broecker 1975; Parry et al. 2007; Karl et al. 2009; National Research Council 2010; Hatfield et al. 2014; Melillo et al. 2014). Knowing how a changing climate will affect agricultural production and the quality of associated natural resources is essential to developing efficient and effective plans for resource allocation that minimize negative economic and sociological impacts (Hatfield et al. 2014). Although the rate and magnitude of climate change are not known with certainty, certain actions, especially those conducted on behalf of agricultural conservation, can serve to protect social welfare and the vitality of the environment. Because actions are undertaken today to address an uncertain future economic and environmental challenge, they constitute, in effect, insurance against the negative impacts of climate change. Agricultural conservation practices on managed lands provide many environmental and societal benefits, such as improved water quality, improved habitat for wildlife, and retention of water for attenuation of flood and drought risks, in addition to sustaining agricultural production. Protecting these benefits and maintaining the sustainability of agriculture under a rapidly changing climate involves a focus not just on agricultural production, but also the health and integrity…