An economic analysis software for evaluating best management practices to mitigate greenhouse gas emissions from cropland

Ziwei Li, Zhiming Qi, Qianjing Jiang and Nathan Sima

Agricultural Systems, 2021, vol. 186, issue C

Abstract: Many recent studies on soil and crop management practices have demonstrated their possibility in mitigating greenhouse gas emissions (GHG) from cropland. The response of GHG emissions to management practices can be quantitatively simulated using biophysics-based agricultural system models. However, the economic feasibilities of such management adoption are yet to be evaluated, especially when the producers have to adopt only one profitable management plan. This paper presents a field-scale economic analysis software that is capable of estimating the net benefits under various greenhouse gas mitigating management practices. The calculated net benefits are based on the benefit-cost analysis (BCA), where GHG emissions are converted to the CO2 equivalent and priced using the information from the current carbon trade market. GHG emissions and crop yield are simulated using the Root Zone Water Quality Model (RZWQM2), an agricultural system model coupled with the BCA software. A case study for a cornfield at the Saint Emmanuel site near Montreal, Canada, from 2012 to 2015 under two water table management practices, i.e., free-drainage (FD) and controlled drainage (CD), results showed that FD was more profitable than CD. Although fewer greenhouse gases were emitted under CD than under FD, the potential benefit under current carbon credit payment from GHG reduction under CD was far less than the additional cost from installing new instruments and excessive maintenance fees. This study suggests that the government subsidy is needed to provide further incentives for producers to adopt new greenhouse gas emission mitigating management practices.

Keywords: Carbon credit; Canada; Economic modeling software development; Greenhouse gas emissions (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:agisys:v:186:y:2021:i:c:s0308521x20308118

DOI: 10.1016/j.agsy.2020.102950

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