ECONOMIC ANALYSIS OF AGRICULTURAL SOIL CARBON SEQUESTRATION: AN INTEGRATED ASSESSMENT APPROACH

This study develops an integrated assessment approach for analysis of the economic potential for carbon sequestration in agricultural soils. By linking a site-specific economic simulation model of agricultural production to a crop ecosystem model, the approach shows the economic efficiency of soil c...

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Bibliographic Details
Published inJournal of Agricultural and Resource Economics Vol. 26; no. 2
Main Authors Elliott, Edward T, Paustian, Keith H, Mooney, Sian, Antle, John M, Capalbo, Susan M
Format Journal Article
LanguageEnglish
Published Western Agricultural Economics Association 2001
SeriesJournal of Agricultural and Resource Economics
Subjects
Crop Production
Industries
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Summary:This study develops an integrated assessment approach for analysis of the economic potential for carbon sequestration in agricultural soils. By linking a site-specific economic simulation model of agricultural production to a crop ecosystem model, the approach shows the economic efficiency of soil carbon (C) sequestration depends on site-specific opportunity costs of changing production practices and rates of soil C sequestration. An application is made to the dryland grain production systems of the U.S. Northern Plains which illustrates the sensitivity of the sequestration costs to policy design. The marginal cost of soil C ranges from $12 to $500 per metric ton depending upon the type of contract or payment mechanism used, the amount of carbon sequestered, and the site-specific characteristics of the areas.