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The relation between indicators for the crediting of emission rights and abatement costs - a systematic modelling approach for dairy farms

DFG Individual Grant (2011-2014)

Overview:

If Greenhouse Gases (GHGs) are to be effectively reduced, agriculture as a non negligible emitter will have to contribute to abatement efforts. Accordingly, for some years already, the inclusion of agriculture, and especially dairy production as a main agricultural emitter in temperate climates, into an emission trading system or its exposure to a climate tax is discussed. However, most agricultural GHG emissions stem from non-point sources and cannot be measured directly.

Therefore, GHG related economic instruments for agriculture must be based on accounting rules which estimate CO2, CH4 and N2O emissions, more or less correctly, from observable farm attributes (herd sizes, milk yields, feed use etc.). In the following we term such a system of accounting rules an emission indicator. Confronted with for example an emission tax agents will select their abatement strategy not based on actual emissions, but on the chosen indicator. The latter hence determines abatement strategies and related costs for a given emission target or tax. Against this background, we want to determine how the choice of indicator impacts on efficiency of abatement, distributional effects and the allocation flexibility of different farms and thus contribute to the discussion about the best policy design for an inclusion of agriculture into climate policy.

Staff at ILR working on the project:

Principle Investigator:

PhD student:

Working papers and conference contributions related to the project

Lengers, B. und Britz, W. (2011): Farm specific marginal abatement costs for dairy GHG emissions which base upon different emission indicators – a bio-economic model approach , selected paper presented at the 2011 EAAE PhD Workshop, April 27-29, 2011, Nitra (Slovak Republic)

Last updated: Monday, November 21, 2011