Assessing the economic impact of an emissions trading scheme on agroforestry in Australia’s northern grazing systems

Peter Donaghy, John Rolfe, Rebecca Gowen, Steven Bray and Hoffman Madonna

No 59069, 2010 Conference (54th), February 10-12, 2010, Adelaide, Australia from Australian Agricultural and Resource Economics Society

Abstract: Although agriculture generates a significant portion of Australia’s greenhouse gas emissions, it also has the potential to sequester large quantities of emissions through changed land use management such as agroforestry. Whilst there is an extensive amount of agroforestry literature, little has been written on the economic consequences of adopting silvopastoral systems in northern Australia. This paper reports the economic feasibility of adopting complimentary agroforestry systems in the low rainfall region of northern Australia. The analysis incorporates the dynamic tradeoffs between tree and pasture growth, carbon sequestration, cleared regrowth decomposition rates and livestock methane emissions in a bioeconomic model. The results suggest there are financial benefits for landholders who integrate complimentary agroforestry activities into existing grazing operations depending on the rules of the carbon accounting framework used.

Keywords: Resource/Energy; Economics; and; Policy (search for similar items in EconPapers)
Pages: 18
Date: 2010
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aare10:59069

DOI: 10.22004/ag.econ.59069

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