EconPapers    
Economics at your fingertips  
 

Contract Design to Sequester Carbon in Agricultural Soils

Mireille Chiroleu-Assouline and Sébastien Roussel

Working Papers from LAMETA, Universtiy of Montpellier

Abstract: According to several studies, agricultural carbon sequestration could be a relatively low cost opportunity to mitigate greenhouse gas (GHG) concentration and a promis-ing means that could be institutionalised. However the potential for additional carbon quantities in agricultural soils is critical and comes from the agricultural .rms behaviour with regards to land heterogeneity. In this paper, our aim is to set incentive mechanisms to enhance carbon sequestration by agricultural .rms. A policymaker has to arrange incentives as agricultural .rms have private information and do not spontaneously switch to the required practices. Moreover, a novelty in our paper is to show that the potential for additional carbon sequestration is similar to an exhaustible resource. As a result, we construct an intertemporal principal-agent model with adverse selection. Our contribution is to specify contracts in order to induce truthful revelation by the .rms regarding their intrinsic characteristics towards carbon sequestration, while analytically characterizing the optimal path to sequester carbon as an exhaustible resource.

Pages: 35 pages
Date: 2010-07, Revised 2010-07
New Economics Papers: this item is included in nep-agr, nep-cta, nep-ene and nep-env
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
http://www.lameta.univ-montp1.fr/Documents/DR2010-07.pdf First version, 2010 (application/pdf)
Our link check indicates that this URL is bad, the error code is: 500 Can't connect to www.lameta.univ-montp1.fr:80 (No such host is known. )

Related works:
Working Paper: Contract Design to Sequester Carbon in Agricultural Soils (2010) Downloads
Working Paper: Contract Design to Sequester Carbon in Agricultural Soils (2010) Downloads
Working Paper: Contract Design to Sequester Carbon in Agricultural Soils (2010) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:lam:wpaper:10-07

Access Statistics for this paper

More papers in Working Papers from LAMETA, Universtiy of Montpellier Contact information at EDIRC.
Bibliographic data for series maintained by Patricia Modat ( this e-mail address is bad, please contact ).

 
Page updated 2024-06-12
Handle: RePEc:lam:wpaper:10-07