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Integrating agricultural and forestry GHG mitigation responses into general economy frameworks: Developing a family of response functions

Journal Article · · Mitigation and Adaptation Strategies for Global Change
An econometrically estimated family of response functions is developed for characterizing potential responses to greenhouse gas mitigation policies by the agriculture and forestry sectors. The response functions are estimated based on results of an agricultural/forestry sector model. They provide estimates of sequestration and emission reductions in forestry and agriculture along with levels of sectoral production, prices, welfare, and environmental attributes given a carbon price, levels of demand for agricultural goods, and the energy price. Six alternative mitigation policies representing types of greenhouse gas offsets allowed are considered. Results indicate that the largest quantity of greenhouse gas offset consistently appears with the mitigation policy that pays for all opportunities. Restricting carbon payments (emission tax or sequestration subsidy) only to aff/deforestation or only to agricultural sequestration substantially reduces potential mitigation. Higher carbon prices lead to more sequestration, less emissions, reduced consumer and total welfare, improved environmental indicators and increased producer welfare.
Research Organization:
Pacific Northwest National Laboratory (PNNL), Richland, WA (US)
Sponsoring Organization:
USDOE
DOE Contract Number:
AC05-76RL01830
OSTI ID:
860010
Report Number(s):
PNNL-SA-39646; KP1202020
Journal Information:
Mitigation and Adaptation Strategies for Global Change, Journal Name: Mitigation and Adaptation Strategies for Global Change Journal Issue: 3 Vol. 9; ISSN MASCFV; ISSN 1381-2386
Country of Publication:
United States
Language:
English

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