Greenhouse gas abatement policies and the value of carbon sinks: Do grazing and cropping systems have different destinies?

Flugge, Felicity; Schilizzi, Steven

doi:10.1016/j.ecolecon.2004.12.033

Cited by 18 publications

(11 citation statements)

References 6 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Allowing farmers to sell offsets for carbon sequestered by the voluntary revegetation of their land may reduce the impact of a carbon price on farm businesses (Flugge and Schilizzi 2005). A high carbon price favours sequestration as it both reduces the viability of other land uses that the revegetation would displace and also increases the price for which the stored carbon could be sold.…”

Section: Resultsmentioning

confidence: 99%

“…For mixed farming systems, the impact of a carbon price on agricultural emissions would be worse in situations conducive to livestock production (Flugge and Schilizzi 2005), such as when livestock prices are high relative to grain prices. This is due to the large emissions of CH 4 attributable to livestock (Figure 2).…”

Section: Resultsmentioning

confidence: 99%

“…Although versions of MIDAS exist for various regions (e.g. Flugge and Schilizzi 2005), the model used in this article represents a typical 2000 ha farm in the central grainbelt of Western Australia. The region is characterised by a Mediterranean climate with long, hot and dry summers and cool, moist winters (June–August) and a growing season (May–October) during which about 75 per cent of the 350–400 mm annual rainfall occurs.…”

Section: Methodsmentioning

confidence: 99%

See 2 more Smart Citations

Measurement of greenhouse gas emissions from agriculture: economic implications for policy and agricultural producers*

Thamo¹,

Kingwell²,

Pannell³

2013

Aus J Agri & Res Econ

View full text Add to dashboard Cite

If agriculture were to be included in Australia's carbon price scheme, a key decision for government would be how to estimate greenhouse gas emissions. We explore the consequences of three different methods for measuring on-farm emissions: national accounting methods, an amended version of those methods and use of best-available local data. Estimated emissions under the three methods can vary widely; for example, on a case study farm in Western Australia, local data indicated 44 per cent lower emissions than did the national accounts method. If on-farm emissions are subject to an emissions price, the impact on farm profit is large and varies considerably with different measurement methods. For instance, if a price of $23/t of CO2-e applies then farm profit falls by 14.4-30.8 per cent depending on the measurement method. Thus, the choice of measurement method can have large distributional consequences. On the other hand, inaccurate measurement results in relatively minor deadweight losses. On-farm sequestration through reafforestation may lessen the impact of an emissions price on farm businesses, although it will require a high carbon price to be viable, especially if sequestration rates are underestimated or low.

show abstract

Section: Resultsmentioning

confidence: 99%

Section: Resultsmentioning

confidence: 99%

Section: Methodsmentioning

confidence: 99%

See 1 more Smart Citation

Measurement of greenhouse gas emissions from agriculture: economic implications for policy and agricultural producers*

Thamo¹,

Kingwell²,

Pannell³

2013

Aus J Agri & Res Econ

View full text Add to dashboard Cite

show abstract

“…Other studies make different compromises. A number have considered the effect of climate‐change policy in Australia with detailed, farm‐level analysis (Petersen et al ; Petersen et al ; Flugge and Schilizzi ; Flugge and Abadi ; Kingwell ; Kragt et al ; Thamo et al ). However, none of these analyses also simultaneously considered the impact of future changes in climate, and how these changes may interact with mitigation policy, such as by affecting the economic viability of sequestration.…”

Section: Introductionmentioning

confidence: 99%

Climate change reduces the mitigation obtainable from sequestration in an Australian farming system

Thamo

Addai

Kragt

et al. 2019

Aus J Agri & Res Econ

View full text Add to dashboard Cite

Agricultural research on climate change generally follows two themes: (i) impact and adaptation or (ii) mitigation and emissions. Despite both being simultaneously relevant to future agricultural systems, the two are usually studied separately. By contrast, this study jointly compares the potential impacts of climate change and the effects of mitigation policy on farming systems in the central region of Western Australia's grainbelt, using the results of several biophysical models integrated into a whole-farm bioeconomic model. In particular, we focus on the potential for interactions between climate impacts and mitigation activities. Results suggest that, in the study area, farm profitability is much more sensitive to changes in climate than to a mitigation policy involving a carbon price on agricultural emissions. Climate change reduces the profitability of agricultural production and, as a result, reduces the opportunity cost of reforesting land for carbon sequestration. Nonetheless, the financial attractiveness of reforestation does not necessarily improve because climate change also reduces tree growth and, therefore, the income from sequestration. Consequently, at least for the study area, climate change has the potential to reduce the amount of abatement obtainable from sequestrationa result potentially relevant to the debate about the desirability of sequestration as a mitigation option. * We thank Jenny Carter for her assistance with the 3PG modelling and Brett Bryan for his feedback on drafts of this manuscript.

show abstract

“…The potential of market‐based incentives for motivating reforestation for carbon sequestration has been recognized internationally (Strengers et al ., ; Golub et al ., ; Jackson & Baker, ; Torres et al ., ; Nijnik et al ., ). Extensive research has found reforestation to be competitive in Australia's agricultural land, even under modest carbon prices (Flugge & Schilizzi, ; Flugge & Abadi, ; Harper et al ., ; Hunt, ; Maraseni & Cockfield, ; Paul et al ., ,b; Polglase et al ., ; Bryan et al ., ; Longmire et al ., ). An earlier review (Richards & Stokes, ) found economic potential to sequester up to 500 MtC yr −1 in the USA, and over 2000 MtC yr −1 globally, at carbon prices ranging from 10 to 150 $ tC −1 .…”

Section: Introductionmentioning

confidence: 99%

Land use efficiency: anticipating future demand for land‐sector greenhouse gas emissions abatement and managing trade‐offs with agriculture, water, and biodiversity

Bryan

Crossman

Nolan

et al. 2015

Global Change Biology

View full text Add to dashboard Cite

Competition for land is increasing, and policy needs to ensure the efficient supply of multiple ecosystem services from land systems. We modelled the spatially explicit potential future supply of ecosystem services in Australia's intensive agricultural land in response to carbon markets under four global outlooks from 2013 to 2050. We assessed the productive efficiency of greenhouse gas emissions abatement, agricultural production, water resources, and biodiversity services and compared these to production possibility frontiers (PPFs). While interacting commodity markets and carbon markets produced efficient outcomes for agricultural production and emissions abatement, more efficient outcomes were possible for water resources and biodiversity services due to weak price signals. However, when only two objectives were considered as per typical efficiency assessments, efficiency improvements involved significant unintended trade-offs for the other objectives and incurred substantial opportunity costs. Considering multiple objectives simultaneously enabled the identification of land use arrangements that were efficient over multiple ecosystem services. Efficient land use arrangements could be selected that meet society's preferences for ecosystem service provision from land by adjusting the metric used to combine multiple services. To effectively manage competition for land via land use efficiency, market incentives are needed that effectively price multiple ecosystem services.

show abstract

Greenhouse gas abatement policies and the value of carbon sinks: Do grazing and cropping systems have different destinies?

Cited by 18 publications

References 6 publications

Measurement of greenhouse gas emissions from agriculture: economic implications for policy and agricultural producers*

Measurement of greenhouse gas emissions from agriculture: economic implications for policy and agricultural producers*

Climate change reduces the mitigation obtainable from sequestration in an Australian farming system

Land use efficiency: anticipating future demand for land‐sector greenhouse gas emissions abatement and managing trade‐offs with agriculture, water, and biodiversity

Contact Info

Product

Resources

About