Methane emissions from livestock enteric fermentation and manure management represent about 40% of total anthropogenic greenhouse gas emissions from the agriculture sector and are projected to increase substantially in the coming decades, with most of the growth occurring in non-Annex 1 countries. To mitigate livestock methane, incentive policies based on producer-level emissions are generally not feasible because of high administrative costs and producer transaction costs. In contrast, incentive policies based on sectoral emissions are likely administratively feasible, even in developing countries. This study uses an economic model of global agriculture to estimate the effects of two sectoral mitigation policies: a carbon tax and an emissions trading scheme based on average national methane emissions per unit of commodity. The analysis shows how the composition and location of livestock production and emissions change in response to the policies. Results illustrate the importance of global mitigation efforts: when policies are limited to Annex 1 countries, increased methane emissions in non-Annex 1 countries offset approximately two-thirds of Annex 1 emissions reductions. While non-Annex 1 countries face substantial disincentives to enacting domestic carbon taxes, developing countries could benefit from participating in a global sectoral emissions trading scheme. We illustrate one scheme in which non-Annex 1 countries collectively earn USD 2.4 billion annually from methane emission permit sales when methane is priced at USD 30/t CO 2 -eq.

This paper is published under the responsibility of the Secretary-General of the OECD. The opinions expressed and the arguments employed herein do not necessarily reflect the official views of OECD countries. The publication of this document has been authorised by Ken Ash, Director of the Trade and Agriculture Directorate. This paper and any map included herein are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area.

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Summary Is Agriculture in the CEECs internationally competitive? With on‐going debates over CAP reform and future accession to the EU, the competitiveness of agricultural production in the Central and East European Countries (CEECs) has become a major issue. This article summarises the key findings of empirical work conducted by the authors and other studies that have estimated the competitiveness of agriculture in seven CEECs. We find that, in general, CEEC crop production is more internationally competitive than livestock farming. During the mid‐1990s, for example, most arable production in the region was internationally competitive but during the same period, milk production was not internationally competitive. There is, however, a considerable degree of variation from country to country; very little of Slovenia's agricultural production, for example, is internationally competitive. In the livestock sector the greatest problems lie where large herds have been broken up resulting in fragmented production. This has particularly affected beef and milk production. We found variations in competitiveness by farm size and farm type. Larger corporate farms in Hungary and the Czech Republic, for example, are more internationally competitive in crop production than the smaller family farms. In general we find that if CEEC producers faced average EU prices for their traded inputs and outputs, most could be price competitive. gľ Agriculture des pays D'Europe centrale et orientale (Peco) es t – elle compétitive sur le plan international? Avec les débats actuels sur la réforme de la PAC et ľ accession future des pays ? Europe centrale et orientale (PECO) àľ Union Européenne, la compétitivité de leur production agricole est devenue un problème majeur. Cet article résume les principaux résultats de travaux empiriques effectués par les auteurs et ceux ? autres études qui ont évalué la compétitivité de ľ agriculture dans sept pays ? Europe centrale et orientale. Nous constatons qu'en général, les produits végétaux des PECO sont plus compétitifs que ľélevage sur le plan international. Au milieu des années 90, par exemple, la plupart des productions végétales de la région était compétitives sur les marchés mondiaux, ce qui n'était pas le cas de la production laitière durant la même période. Il existe, cependant, des variations considérables ? un pays àľ autre; une toute petite partie de la production agricole de Slovénie, par exemple, est compétitive àľ international. Dans le secteur de ľélevage, les plus gros problèmes résident dans le fait que les grands troupeaux ont été disperses, entraînant la fragmentation de la production. Ceci a affecté en particulier la production de bceuf et de lait. Nous constatons des variations de compétitivité par taille et type ? exploitation. Les grandes exploitations sociétaires de Hongrie et de République tchèque, par exemple, sont plus compétitives sur le plan international pour les productions végétales que les petites fermes familiales. Globalement, nous constatons que si les producteurs de...