Preliminary Assessment of Nitrous Oxide Offsets in a Cap and Trade Program

Marc Ribaudo, Jorge Delgado and Michael Livingston

Agricultural and Resource Economics Review, 2011, vol. 40, issue 2, 266-281

Abstract: Nitrous oxide is a powerful greenhouse gas that is emitted from cropland treated with nitrogen fertilizer. Reducing such emissions through nutrient management might be able to produce offsets for sale in a cap and trade program aimed at reducing greenhouse gases. We use the Nitrate Leaching and Economic Analysis Program (NLEAP) model and data from the Agricultural and Resource Management Survey to examine what changes in rate, timing, or method of application a farmer would take to produce offsets. We find that reducing the application rate is the most favored approach for producing offsets. We also find that some management choices may increase nitrate losses to water.

Date: 2011
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