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Evaluating Policy Options to Reduce N2O Emissions from US Agriculture

Author

Listed:
  • Klotz, Richard
  • Gurung, Ram
  • Ogle, Stephen
  • Paustian, Keith
  • Sheehan, John
  • Bento, Antonio M.
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.

Suggested Citation

  • Klotz, Richard & Gurung, Ram & Ogle, Stephen & Paustian, Keith & Sheehan, John & Bento, Antonio M., 2015. "Evaluating Policy Options to Reduce N2O Emissions from US Agriculture," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205808, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea15:205808
    DOI: 10.22004/ag.econ.205808
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    File URL: https://ageconsearch.umn.edu/record/205808/files/N2O_aaea_submission.pdf
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    References listed on IDEAS

    as
    1. Antonio M. Bento, Richard Klotz, and Joel R. Landry, 2015. "Are there Carbon Savings from US Biofuel Policies? The Critical Importance of Accounting for Leakage in Land and Fuel Markets," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3).
    2. World Bank, 2015. "World Development Indicators 2015," World Bank Publications - Books, The World Bank Group, number 21634.
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    Environmental Economics and Policy;

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