[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/sgc/wpaper/18.html
   My bibliography  Save this paper

Leakage and Comparative Advantage Implications of Agricultural Participation in Greenhouse Gas Emission Mitigation

Author

Listed:
  • Heng-Chi Lee
  • Bruce A. McCarl
  • Uwe A. Schneider

    (Research unit Sustainability and Global Change)

  • Chi-Chung Chen
Abstract
The world is moving toward efforts to reduce greenhouse gas emissions. Net emission reduction efforts may involve the agricultural sector through options such as planting of trees, crop and livestock management changes, and production of biofuels. However, such options can be competitive with domestic food production. In a free trade arena, reduced domestic food production could stimulate increased production and exports in other countries, which are not pursuing similar mitigative courses of action. As a consequence, net emission reductions in implementing countries may be offset by activities stimulated in other countries. In addition producers in countries where agriculture is subject to greenhouse gas mitigation have expressed concern about their competitive position to countries which are not trying to reduce net emissions.

Suggested Citation

  • Heng-Chi Lee & Bruce A. McCarl & Uwe A. Schneider & Chi-Chung Chen, 2003. "Leakage and Comparative Advantage Implications of Agricultural Participation in Greenhouse Gas Emission Mitigation," Working Papers FNU-18, Research unit Sustainability and Global Change, Hamburg University, revised Jan 2003.
    • Handle: RePEc:sgc:wpaper:18
    as

    Download full text from publisher

    File URL: http://www.fnu.zmaw.de/fileadmin/fnu-files/publication/working-papers/agemleak_FNU18.pdf
    File Function: First version, 2003
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Wu, JunJie & Zilberman, David & Babcock, Bruce A., 2001. "Environmental and Distributional Impacts of Conservation Targeting Strategies," Journal of Environmental Economics and Management, Elsevier, vol. 41(3), pages 333-350, May.
    2. JunJie Wu, 2000. "Slippage Effects of the Conservation Reserve Program," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(4), pages 979-992.
    3. Dana L. Hoag & William E. Foster & Bruce A. Babcock, 1993. "Field-Level Measurement of Land Productivity and Program Slippage," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 75(1), pages 181-189.
    4. Terry Barker, 1999. "Achieving a 10% Cut in Europe's Carbon Dioxide Emissions using Additional Excise Duties: Coordinated, Uncoordinated and Unilateral Action using the Econometric Model E3ME," Economic Systems Research, Taylor & Francis Journals, vol. 11(4), pages 401-422.
    5. Kaplow, Louis & Shavell, Steven, 2002. "Economic analysis of law," Handbook of Public Economics, in: A. J. Auerbach & M. Feldstein (ed.), Handbook of Public Economics, edition 1, volume 3, chapter 25, pages 1661-1784, Elsevier.
    6. Adam B. Jaffe et al., 1995. "Environmental Regulation and the Competitiveness of U.S. Manufacturing: What Does the Evidence Tell Us?," Journal of Economic Literature, American Economic Association, vol. 33(1), pages 132-163, March.
    7. Felder Stefan & Rutherford Thomas F., 1993. "Unilateral CO2 Reductions and Carbon Leakage: The Consequences of International Trade in Oil and Basic Materials," Journal of Environmental Economics and Management, Elsevier, vol. 25(2), pages 162-176, September.
    8. Uwe Schneider & Bruce McCarl, 2003. "Economic Potential of Biomass Based Fuels for Greenhouse Gas Emission Mitigation," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 24(4), pages 291-312, April.
    9. Konyar, Kazim & Howitt, Richard E., 2000. "The Cost Of The Kyoto Protocol To U.S. Crop Production: Measuring Crop Price, Regional Acreage, Welfare, And Input Substitution Effects," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 25(2), pages 1-21, December.
    10. Bruce A. McCarl & Uwe A. Schneider, 2000. "U.S. Agriculture's Role in a Greenhouse Gas Emission Mitigation World: An Economic Perspective," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 22(1), pages 134-159.
    11. Brian C. Murray & Bruce A. McCarl & Heng-Chi Lee, 2004. "Estimating Leakage from Forest Carbon Sequestration Programs," Land Economics, University of Wisconsin Press, vol. 80(1), pages 109-124.
    12. Ching-Cheng Chang & Bruce A. McCarl & James W. Mjelde & James W. Richardson, 1992. "Sectoral Implications of Farm Program Modifications," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 74(1), pages 38-49.
    13. Uwe A. Schneider & Bruce A. McCarl & Brian C. Murray & Jimmy R. Williams & Ronald D. Sands, 2001. "Economic Potential of Greenhouse Gas Emission Reductions: Comparative Role for Soil Sequestration in Agriculture and Forestry," Center for Agricultural and Rural Development (CARD) Publications 01-wp281, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    14. Schneider, Uwe A. & Kumar, Pushpam, 2008. "Greenhouse Gas Mitigation through Agriculture," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 23(1), pages 1-5.
    15. Brooks, H. G. & Aradhyula, Satheesh V. & Johnson, Stanley R., 1992. "Land Quality and Producer Participation in U.S. Commodity Programs," Staff General Research Papers Archive 470, Iowa State University, Department of Economics.
    16. Kenneth M. Chomitz, 2002. "Baseline, leakage and measurement issues: how do forestry and energy projects compare?," Climate Policy, Taylor & Francis Journals, vol. 2(1), pages 35-49, March.
    17. Chen, Chi-Chung & McCarl, Bruce A., 2000. "The Value Of Enso Information To Agriculture: Consideration Of Event Strength And Trade," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 25(2), pages 1-18, December.
    18. Terry Barker & Jonathan Köhler (ed.), 1998. "International Competitiveness and Environmental Policies," Books, Edward Elgar Publishing, number 1454.
    19. Ralph Alig & Darius Adams & Bruce McCarl & J. Callaway & Steven Winnett, 1997. "Assessing effects of mitigation strategies for global climate change with an intertemporal model of the U.S. forest and agriculture sectors," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 9(3), pages 259-274, April.
    20. Babiker, Mustafa H., 2001. "Subglobal climate-change actions and carbon leakage: the implication of international capital flows," Energy Economics, Elsevier, vol. 23(2), pages 121-139, March.
    21. Yves Léon & . European Association of Agricultural Economists, 1999. "The economic analysis of rural development," Post-Print hal-01931596, HAL.
    22. Pethig, Rudiger, 1976. "Pollution, welfare, and environmental policy in the theory of Comparative Advantage," Journal of Environmental Economics and Management, Elsevier, vol. 2(3), pages 160-169, February.
    23. Revesz, Richard L. & Stavins, Robert N., 2007. "Environmental Law," Handbook of Law and Economics, in: A. Mitchell Polinsky & Steven Shavell (ed.), Handbook of Law and Economics, edition 1, volume 1, chapter 8, pages 499-589, Elsevier.
    24. Antle, John M. & Capalbo, Susan M. & Johnson, James B. & Miljkovic, Dragan, 1999. "The Kyoto Protocol: Economic Effects of Energy Prices on Northern Plains Dryland Grain Production," Agricultural and Resource Economics Review, Cambridge University Press, vol. 28(1), pages 96-105, April.
    25. Bernstein, Paul M. & Montgomery, W. David & Rutherford, Thomas F., 1999. "Global impacts of the Kyoto agreement: results from the MS-MRT model," Resource and Energy Economics, Elsevier, vol. 21(3-4), pages 375-413, August.
    26. Roningen, Vernon & Sullivan, John & Dixit, Praveen, 1991. "Documentation of the Static World Policy Simulation (SWOPSIM) Modeling Framework," Staff Reports 278599, United States Department of Agriculture, Economic Research Service.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. ince, meltem, 2011. "Financial liberalization, financial development and economic growth: An empirical analysis for Turkey," MPRA Paper 31978, University Library of Munich, Germany, revised 05 May 2011.
    2. Torbjörn Jansson & Ida Nordin & Fredrik Wilhelmsson & Peter Witzke & Gordana Manevska‐Tasevska & Franz Weiss & Alexander Gocht, 2021. "Coupled Agricultural Subsidies in the EU Undermine Climate Efforts," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 43(4), pages 1503-1519, December.
    3. Vaal, Albert de & Yetkiner, I. Hakan & Zon, Adriaan van, 2002. "The cyclical advancement of drastic technologies," CCSO Working Papers 200217, University of Groningen, CCSO Centre for Economic Research.
    4. Britz, Wolfgang & van Ittersum, Martin K. & Oude Lansink, Alfons G.J.M. & Heckelei, Thomas, 2012. "Tools for Integrated Assessment in Agriculture. State of the Art and Challenges," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 1(2), pages 1-26, August.
    5. Himics, Mihaly & Fellmann, Thomas & Barreiro-Hurlé, Jesús & Witzke, Heinz-Peter & Pérez Domínguez, Ignacio & Jansson, Torbjörn & Weiss, Franz, 2018. "Does the current trade liberalization agenda contribute to greenhouse gas emission mitigation in agriculture?," Food Policy, Elsevier, vol. 76(C), pages 120-129.
    6. P. Michael Link, 2003. "Auswirkungen populationsdynamischer Veränderungen in Fischbeständen auf die Fischereiwirtschaft in der Barentssee," Working Papers FNU-29, Research unit Sustainability and Global Change, Hamburg University, revised May 2003.
    7. McCarl, Bruce A., 2008. "The Lifecycle Carbon Footprint, Bioenergy and Leakage: Empirical Investigations," Lifecycle Carbon Footprint of Biofuels Workshop, January 29, 2008, Miami Beach, Florida 49100, Farm Foundation.
    8. Zhou Yuan & Richard S.J. Tol, 2004. "Evaluating the costs of desalination and water transport," Working Papers FNU-41, Research unit Sustainability and Global Change, Hamburg University, revised Dec 2004.
    9. B. Jong & E. Bazán & S. Montalvo, 2007. "Application of the “Climafor” baseline to determine leakage: the case of Scolel Té," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 12(6), pages 1153-1168, July.
    10. Bruce A McCarl & Thomas W Hertel, 2018. "Climate Change as an Agricultural Economics Research Topic," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 40(1), pages 60-78.
    11. Claudia Dias & Ricardo Gouveia Rodrigues & João J. Ferreira, 2021. "Small agricultural businesses' performance—What is the role of dynamic capabilities, entrepreneurial orientation, and environmental sustainability commitment?," Business Strategy and the Environment, Wiley Blackwell, vol. 30(4), pages 1898-1912, May.
    12. Sam Van Hoof, 2023. "Climate Change Mitigation in Agriculture: Barriers to the Adoption of Carbon Farming Policies in the EU," Sustainability, MDPI, vol. 15(13), pages 1-17, July.
    13. I. Hakan Yetkiner, 2003. "Is There An Indispensable Role For Government During Recovery From An Earthquake? A Theoretical Elaboration," Working Papers FNU-25, Research unit Sustainability and Global Change, Hamburg University, revised Apr 2003.
    14. Roberto Roson & Richard s.J. Tol, 2003. "An Integrated Assessment Model Of Economy-Energy-Climate – The Model Wiagem: A Comment," Working Papers FNU-26, Research unit Sustainability and Global Change, Hamburg University, revised May 2003.
    15. Uwe A. Schneider & Bruce A. McCarl, 2006. "Appraising agricultural greenhouse gas mitigation potentials: effects of alternative assumptions," Agricultural Economics, International Association of Agricultural Economists, vol. 35(3), pages 277-287, November.
    16. Mosnier, A. & Havlík, P. & Valin, H. & Baker, J. & Murray, B. & Feng, S. & Obersteiner, M. & McCarl, B.A. & Rose, S.K. & Schneider, U.A., 2013. "Alternative U.S. biofuel mandates and global GHG emissions: The role of land use change, crop management and yield growth," Energy Policy, Elsevier, vol. 57(C), pages 602-614.
    17. Haim, David & White, Eric M. & Alig, Ralph J., 2014. "Permanence of agricultural afforestation for carbon sequestration under stylized carbon markets in the U.S," Forest Policy and Economics, Elsevier, vol. 41(C), pages 12-21.
    18. Wan-Yu Liu & Qunwei Wang, 2016. "Optimal pricing of the Taiwan carbon trading market based on a demand–supply model," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 84(1), pages 209-242, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Schneider, Uwe A. & McCarl, Bruce A., 2005. "Implications of a Carbon-Based Energy Tax for U.S. Agriculture," Agricultural and Resource Economics Review, Cambridge University Press, vol. 34(2), pages 265-279, October.
    2. Jennifer M. Alix-Garcia & Elizabeth N. Shapiro & Katharine R. E. Sims, 2012. "Forest Conservation and Slippage: Evidence from Mexico’s National Payments for Ecosystem Services Program," Land Economics, University of Wisconsin Press, vol. 88(4), pages 613-638.
    3. Szulczyk, Kenneth R. & McCarl, Bruce A. & Cornforth, Gerald, 2010. "Market penetration of ethanol," Renewable and Sustainable Energy Reviews, Elsevier, vol. 14(1), pages 394-403, January.
    4. Gwenolé Le Velly & Alexandre Sauquet & Sergio Cortina-Villar, 2017. "PES Impact and Leakages over Several Cohorts: The Case of the PSA-H in Yucatan, Mexico," Land Economics, University of Wisconsin Press, vol. 93(2), pages 230-257.
    5. Kim, Man-Keun & Peralta, Denis & McCarl, Bruce A., 2014. "Land-based greenhouse gas emission offset and leakage discounting," Ecological Economics, Elsevier, vol. 105(C), pages 265-273.
    6. Gan, Jianbang & McCarl, Bruce A., 2007. "Measuring transnational leakage of forest conservation," Ecological Economics, Elsevier, vol. 64(2), pages 423-432, December.
    7. Francesco Nicolli & Francesco Vona & Lionel Nesta, 2012. "Determinants of Renewable Energy Innovation: Environmental Policies vs. Market Regulation," Working Papers 201204, University of Ferrara, Department of Economics.
    8. repec:hal:spmain:info:hdl:2441/eu4vqp9ompqllr09j0h0ji242 is not listed on IDEAS
    9. Delacote, Philippe & Robinson, Elizabeth J.Z. & Roussel, Sébastien, 2016. "Deforestation, leakage and avoided deforestation policies: A spatial analysis," Resource and Energy Economics, Elsevier, vol. 45(C), pages 192-210.
    10. Kung, Chih-Chun & Wu, Tao, 2021. "Influence of water allocation on bioenergy production under climate change: A stochastic mathematical programming approach," Energy, Elsevier, vol. 231(C).
    11. Werner Antweiler & Brian R. Copeland & M. Scott Taylor, 2001. "Is Free Trade Good for the Environment?," American Economic Review, American Economic Association, vol. 91(4), pages 877-908, September.
    12. Szulczyk, Kenneth R. & McCarl, Bruce A., 2010. "Market penetration of biodiesel," Renewable and Sustainable Energy Reviews, Elsevier, vol. 14(8), pages 2426-2433, October.
    13. Jota Ishikawa & Toshihiro Okubo, 2017. "Greenhouse-Gas Emission Controls and Firm Locations in North–South Trade," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 67(4), pages 637-660, August.
    14. Uwe A. Schneider & Michael Obersteiner & Erwin Schmid & Bruce A. McCarl, 2007. "Agricultural adaptation to climate policies under technical change," Working Papers FNU-133, Research unit Sustainability and Global Change, Hamburg University, revised Jan 2008.
    15. Snorre Kverndokk & Lars Lindholt & Knut Rosendahl, 2000. "Stabilization of CO 2 concentrations: mitigation scenarios using the Petro model," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 3(2), pages 195-224, June.
    16. Toke Aidt, 2004. "The rise of environmentalism, pollution taxes and intra-industry trade," Economics of Governance, Springer, vol. 6(1), pages 1-12, January.
    17. Rahel Aichele, 2013. "Trade, Climate Policy and Carbon Leakage - Theory and Empirical Evidence," ifo Beiträge zur Wirtschaftsforschung, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 49.
    18. FRASER Iain & WASCHIK Robert, 2010. "Agricultural Land Retirement for Biodiversity: The Australian Wool Industry," EcoMod2003 330700055, EcoMod.
    19. Kung, Chih-Chun & Cao, Xiaoyong & Choi, Yongrok & Kung, Shan-Shan, 2019. "A stochastic analysis of cropland utilization and resource allocation under climate change," Technological Forecasting and Social Change, Elsevier, vol. 148(C).
    20. Kuosmanen, Timo & Vöhringer, Frank & Dellink, Rob B., 2004. "A Proposal for the Attribution of Market Leakage to CDM Projects," HWWA Discussion Papers 262, Hamburg Institute of International Economics (HWWA).
    21. Jianbang Gan, 2006. "International Trade and Forest Conservation Leakage," EcoMod2006 272100030, EcoMod.

    More about this item

    Keywords

    Emission Leakage; Agricultural Sector Model; Greenhouse Gas Policy; Mitigation; Carbon Sequestration;
    All these keywords.

    JEL classification:

    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sgc:wpaper:18. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Uwe Schneider (email available below). General contact details of provider: https://edirc.repec.org/data/zmhamde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.