Evaluating Policy Options to Reduce N2O Emissions from US Agriculture

Richard Klotz, Ram Gurung, Stephen Ogle, Keith Paustian, John Sheehan and Antonio Bento ()

No 205808, 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California from Agricultural and Applied Economics Association

Abstract: If emissions from a sector are unobservable, direct emissions policies are unlikely to be extended to this sector. However, alternative policies based on observable quantities may be able to reduce emissions from the unregulated source at costs similar to a first-best policy. This paper evaluates the costs of policy instruments for reducing GHG emissions from cropland agriculture, a large source of emissions that are unobservable, using an integrated biophysical and economic model. Results suggest that policies regulating readily observable quantities can reduce agricultural N2O emissions at costs approaching those of the unavailable emissions tax. However, alternative policies with costs similar to the emissions tax may have considerably different impacts on agricultural sector profit.

Keywords: Environmental; Economics; and; Policy (search for similar items in EconPapers)
Pages: 50
Date: 2015
New Economics Papers: this item is included in nep-ene and nep-env
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea15:205808

DOI: 10.22004/ag.econ.205808

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