The Efficiency of Sequestering Carbon in Agricultural Soils

Abstract

Agricultural tillage practices are important human-induced activities that can alter carbon emissions from agricultural soils and have the potential to significantly contribute to reductions in greenhouse gas emission (Lal et al, 1998). This research investigates the expected costs of sequestering carbon in agricultural soils under different subsidy and market-based policies. Using the detailed National Resources Inventory data, we estimate the probability that farmers adopt conservation tillage practices based on a variety of exogenous characteristics and profit from conventional practices. These estimates are used with physical models of carbon sequestration to estimate the subsidy costs of achieving increased carbon sequestration with alternative subsidy schemes. Disciplines AbstractAgricultural tillage practices are important human-induced activities that can alter carbon emissions from agricultural soils and have the potential to significantly contribute to reductions in greenhouse gas emission (Lal et al, 1998). This research investigates the expected costs of sequestering carbon in agricultural soils under different subsidy and market-based policies. Using the detailed National Resources Inventory data, we estimate the probability that farmers adopt conservation tillage practices based on a variety of exogenous characteristics and profit from conventional practices. These estimates are used with physical models of carbon sequestration to estimate the subsidy costs of achieving increased carbon sequestration with alternative subsidy schemes.

Green Subsidies in Agriculture: Estimating the Adoption Costs of Conservation Tillage from Observed Behavior

“…Our lower estimates seem reasonable in our study application given that, without any subsidies, about 64% of Iowa crop land under corn and 68% of that under soybeans is already worked using conservation tillage. Likewise, the subsidy estimates reported here are lower than those reported in Pautsch et al (2001) due to our more accurate inclusion of a premium and better econometric fit. Applying equation (5) to each sample point, we calculate the required minimum adoption subsidies for the entire sample and obtain the state's intensity of adoption at each subsidy level, or the "supply curve" of conservation tillage, presented in Figure 1.…”

“…First, we adopt a modeling strategy that allows for full recovery of the structural coefficients and hence the ability to directly compute the subsidies needed for adoption. Pautsch et al (2001) apply a simple version of this model to examine the potential for carbon sequestration in agricultural soils, and Wu et al (2004) similarly use a discrete choice model to study policies aimed at nonpoint source pollution reduction. Here, we develop a richer version where we incorporate an adoption premium related to uncertainty in addition to changes in expected profit.…”

Climate Change Impacts on Yields and Soil Carbon in Row Crop Dryland Agriculture

“…In drylands, a large private cost of conservation agriculture can be the opportunity cost of not using the crop residues for livestock fodder or as a bioenergy feedstock (Miner et al, 2013;Plaza-Bonilla et al, 2015). Developing C markets that include sequestration in soils has the potential to help offset these costs (Pautsch et al, 2001), but implementation has proven to be difficult and inefficient (Antle and Diagana, 2003;Simone et al, 2017). Public policy to facilitate a transition toward increased cropping intensity/diversity specifically appears to be more realistic, but implementation began only recently worldwide ( Joshi et al, 2004;Alauddin and Quiggin, 2008;Binswanger-Mkhize and Savastano, 2017).…”

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

“…A measurement protocol to support trades in soil C credits must complement the way that contracts are structured and designed. Two alternative contract designs have been proposed for agricultural soil C sequestration Pautsch et al 2001;Parks and Hardie 1995). The first follows the spirit of existing agricultural programs, such as the Conservation Reserve Program, and provides producers with a uniform payment for every hectare on which they adopt management practices that sequesters additional C. These perhectare contracts do not link payments to the quantity of C that is accumulated as a result of the change in practices and are typical of many existing government programs.…”

“…Several companies have formed already to provide credit aggregation services within the current voluntary market, for example, the National Carbon Offset Coalition and Blue Source Inc., among others. Previous studies (for example, Antle et al 2003;Pautsch et al 2001) have shown that agriculture can supply C at a cost that is competitive with other sectors and thus a low-cost, effective measurement protocol for soil C is an important consideration in developing C credit contracts for agriculture.…”