Marginal abatement costs of greenhouse gas emissions: broadacre farming in the Great Southern Region of Western Australia

Tang, Kai; Hailu, Atakelty; Kragt, Marit; Ma, Chunbo

doi:10.1111/1467-8489.12135

Cited by 40 publications

(16 citation statements)

References 32 publications

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“…S is a convex compact set and satisfies the standard polluting production axioms (see Färe et al. , 2005; Tang et al. , 2016b).…”

Section: Methodsmentioning

confidence: 99%

The cost-effectiveness of agricultural greenhouse gas reduction under diverse carbon policies in China

Tang

Ma²

2022

CAER

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PurposeMitigating agricultural greenhouse gas (GHG) emissions is an essential part of China's effort to achieve net-zero emissions. This study assesses the cost-effectiveness of China's agricultural GHG reduction under diverse carbon policies.Design/methodology/approachThe study employs a parametric non-radial distance function approach and estimates the technical abatement potential and marginal abatement cost (MAC) of GHG in China's agricultural sector for the 2008–2017 period.FindingsAgriculture is expected to make a great contribution to China's net-zero emissions progress. This study empirically analyses the cost-effectiveness of China's agricultural GHG reduction under diverse carbon policies. A parametric non-radial distance function approach is used to derive technical abatement potential and MAC of GHG for the 2008–2017 period. The results indicate that no significant improvement had been achieved in terms of agricultural GHG reduction in China during 2008–2017. The country's agricultural sector could reduce 20–40% GHG emissions with a mean value of 31%. In general, western provinces have larger reduction potential than eastern ones. The average MAC for the whole country is 4,656 yuan/ton CO2e during 2008–2017. For most western provinces, their MAC values are considerably higher than those for most eastern provinces. Compared with previous sectoral estimates of GHG mitigation cost, this study’s estimates indicate that reducing agricultural GHG emissions in some provinces is likely to be cost-effective. The Chinese government should consider expanding its national carbon market to cover agricultural sector.Practical implicationsThe Chinese government should consider expanding its national carbon market to cover agricultural sector.Originality/valueExisting studies in the field mostly ignore input constraints, which is inconsistent with carbon mitigation policy practice, especially in the agricultural sector. This study’s approach integrates both input and output constraints reflecting differing policy practice.

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“…S is a convex compact set and satisfies the standard polluting production axioms (see Färe et al. , 2005; Tang et al. , 2016b).…”

Section: Methodsmentioning

confidence: 99%

The cost-effectiveness of agricultural greenhouse gas reduction under diverse carbon policies in China

Tang

Ma²

2022

CAER

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“…We used the Intergovernmental Panel on Climate Change (IPCC) inventory method to calculate on‐farm GHG emission (IPCC, ), but adjusted emission factors to reflect the characteristics of the semi‐arid farming region (Tang et al . , ). All GHG emission have been converted to carbon dioxide equivalents (CO 2 ‐e).…”

Section: Methodsmentioning

confidence: 99%

“…In total, agriculture accounts for approximately 15 per cent of China's total GHG emission, 90 per cent of N 2 O emission, and 60 per cent of CH 4 emission, which is equivalent to about 2.7 times Australia's entire GHG emission (Tang et al . ; Wu et al . ; Yang et al .…”

Section: Introductionmentioning

confidence: 99%

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Does carbon farming provide a cost‐effective option to mitigate GHG emissions? Evidence from China

Tang

et al. 2019

Aus J Agri & Res Econ

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In this study, we apply a whole farm bioeconomic analysis to explore the changes in land use, farm practices and on‐farm greenhouse gas (GHG) emission under varying levels of agricultural greenhouse gas abatement incentives in the form of a carbon tax for a semi‐arid crop‐livestock farming system in China's Loess Plateau. Our results show that the optimised agricultural enterprises move towards being cropping‐dominated reducing on‐farm emission since livestock perform is the major source of emission. Farmers employ less oats‐based and rapeseed‐based rotations but more dry pea‐based rotations in the optimal enterprise mix. A substantial reduction in on‐farm greenhouse gas emission can be achieved at low cost with a small increase in carbon incentives. Our estimates indicate that crop‐livestock farmers in China's Loess Plateau may reduce their on‐farm GHG emission between 16.6 and 33 per cent with marginal abatement costs <￥100/t CO2e and ￥150/t CO2e in 2015 Chinese Yuan. The analysis implies that reducing greenhouse gas emission in China's semi‐arid crop‐livestock agriculture is potentially a low‐cost option.

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“…; Färe and Karagiannis ; Feng and Serletis ; Tang et al . ). The directional distance function allows for directional efficiency measurement; that is, the researcher is not limited to the commonly employed efficiency concept of simultaneous proportional reductions in inputs or expansion of outputs.…”

Section: Introductionmentioning

confidence: 97%

Balancing economic revenue and grazing pressure of livestock grazing on the Qinghai-Tibetan-Plateau

Huang

Bruemmer

2017

Aust J Agric Resour Econ

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Treating grazing pressure as an undesirable output of livestock grazing in a directional distance function improves understanding of how economic behaviour affects the environment. Field survey data from 193 livestock grazing households combined with remotely sensed net primary productivity (NPP) data on the Qinghai–Tibetan–Plateau was used to develop a directional output‐orientation distance function. The average efficiency of livestock grazing households is 0.817 when incorporating grazing pressure as an undesirable output, which means that households can achieve 18.3% more output and decrease proportional grazing pressure holding all inputs fixed. The relative shadow price of undesirable grazing pressure to good output grazing revenue is estimated to be between 1.795 and 3.986. According to the Morishima elasticity of substitution between inputs, there is a significant complementary relationship between grassland, labour and capital.

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Marginal abatement costs of greenhouse gas emissions: broadacre farming in the Great Southern Region of Western Australia

Cited by 40 publications

References 32 publications

The cost-effectiveness of agricultural greenhouse gas reduction under diverse carbon policies in China

The cost-effectiveness of agricultural greenhouse gas reduction under diverse carbon policies in China

Does carbon farming provide a cost‐effective option to mitigate GHG emissions? Evidence from China

Balancing economic revenue and grazing pressure of livestock grazing on the Qinghai-Tibetan-Plateau

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