ABSTRACT In a recent article, Ancev (2011) argues that mandating agriculture in a greenhouse gas ... more ABSTRACT In a recent article, Ancev (2011) argues that mandating agriculture in a greenhouse gas (GHG) emission trading scheme (ETS) would not be socially beneficial, because of high abatement and transaction costs in agriculture. We re-examine this conclusion by assessing the costs and benefits of extending the coverage of the EU ETS to agriculture in the perspective of the EU 2020 GHG reduction target. As for marginal abatement costs in agriculture, our assessment is based on the results from a recent meta-analysis also used by Ancev. Taking Ancev's assumptions regarding transaction costs, our results do not support the conclusion that costs offset the gains permitted by a greater flexibility across sectors. Moreover, we argue that transaction costs in agriculture may be lower than what is suggested by the extrapolation of results obtained for the sectors currently covered by the ETS, in particular if (i) the calculation of GHG emissions are based on the internationally-agreed IPCC guideline
This text reviews the assessments of marginal abatement costs of methane and nitrous oxide emissi... more This text reviews the assessments of marginal abatement costs of methane and nitrous oxide emissions from agriculture. We use agricultural emissions and the corresponding prices collected from 21 studies that have assessed abatement potentials and costs using various modeling approaches and assumptions. We first highlight the implications of the modeling approach for marginal abatement costs. Harmonized abatement rates for three emission prices (10, 20 and 50 € 2005 /tCO 2 eq) are regressed on variables that reflect various modeling assumptions and study characteristics. In a second step, the emission price is introduced as an explanatory variable. When controlling for a few key characteristics of the studies, the models explain an important share of the observed variability in abatement rates. The type of modeling approach is found to have a significant effect. In particular, we find that equilibrium models lead to higher abatement rates for a given price. The flexibility in nitrogen use and its effect on crop yields also plays a significant role in lowering marginal abatement costs. The results of the second step indicate that the price elasticity of the abatement rate is about 0.6. This estimate is found to be robust to several specifications and consistent with previous assessments covering other economic sectors.
We investigate the impacts of multilateral removal of all border taxes and farm programs and thei... more We investigate the impacts of multilateral removal of all border taxes and farm programs and their distortions on developing economies, using a world agriculture partial equilibrium model.
We examine the spatial and dynamic implications of policies aimed at encouraging carbon sequestra... more We examine the spatial and dynamic implications of policies aimed at encouraging carbon sequestration in agricultural soils. We consider incentive mechanisms to encourage the planting of energy multi-annual crops that allow higher carbon sequestration rates for a longer period of time. By using a dynamic micro-economic model, we simulate the sequence of crop plantings over a given time horizon and investigate different payment mechanisms (per-ton or per-hectare). We discuss their implications in terms of regulation policy and efficiency. This model is then applied to the Central Plains of Thessaly, Greece, to assess the marginal costs of carbon sequestration and the optimal timing of switching to multi-annual energy crops. To do so, we couple the dynamic microeconomic model with a carbon accounting model and a geophysical database. We provide an assessment of the potential loss of efficiency related to the use of constant per-hectare payments. We also discuss the dynamic implications of these mechanisms, as well as their results in terms of spatial distribution.
This paper addresses the question of summer cover crop adoption by farmers in presence of a risk ... more This paper addresses the question of summer cover crop adoption by farmers in presence of a risk of yield loss due to take-all disease and climate variability. To analyse the public incentives needed to encourage farmers to adopt summer cover crops as a means of reducing N leaching, we combine outputs from an economic, an epidemiological and an agronomic model. The economic model is a simple model of choice under uncertainty. The farmer is assumed to choose among a range of summer fallow managements and input uses on the basis of the expected utility criterion (HARA assumption) in presence of both climate and take all risks. The epidemiological model proposed by Ennaïfar et al.
ABSTRACT In a recent article, Ancev (2011) argues that mandating agriculture in a greenhouse gas ... more ABSTRACT In a recent article, Ancev (2011) argues that mandating agriculture in a greenhouse gas (GHG) emission trading scheme (ETS) would not be socially beneficial, because of high abatement and transaction costs in agriculture. We re-examine this conclusion by assessing the costs and benefits of extending the coverage of the EU ETS to agriculture in the perspective of the EU 2020 GHG reduction target. As for marginal abatement costs in agriculture, our assessment is based on the results from a recent meta-analysis also used by Ancev. Taking Ancev's assumptions regarding transaction costs, our results do not support the conclusion that costs offset the gains permitted by a greater flexibility across sectors. Moreover, we argue that transaction costs in agriculture may be lower than what is suggested by the extrapolation of results obtained for the sectors currently covered by the ETS, in particular if (i) the calculation of GHG emissions are based on the internationally-agreed IPCC guideline
This text reviews the assessments of marginal abatement costs of methane and nitrous oxide emissi... more This text reviews the assessments of marginal abatement costs of methane and nitrous oxide emissions from agriculture. We use agricultural emissions and the corresponding prices collected from 21 studies that have assessed abatement potentials and costs using various modeling approaches and assumptions. We first highlight the implications of the modeling approach for marginal abatement costs. Harmonized abatement rates for three emission prices (10, 20 and 50 € 2005 /tCO 2 eq) are regressed on variables that reflect various modeling assumptions and study characteristics. In a second step, the emission price is introduced as an explanatory variable. When controlling for a few key characteristics of the studies, the models explain an important share of the observed variability in abatement rates. The type of modeling approach is found to have a significant effect. In particular, we find that equilibrium models lead to higher abatement rates for a given price. The flexibility in nitrogen use and its effect on crop yields also plays a significant role in lowering marginal abatement costs. The results of the second step indicate that the price elasticity of the abatement rate is about 0.6. This estimate is found to be robust to several specifications and consistent with previous assessments covering other economic sectors.
We investigate the impacts of multilateral removal of all border taxes and farm programs and thei... more We investigate the impacts of multilateral removal of all border taxes and farm programs and their distortions on developing economies, using a world agriculture partial equilibrium model.
We examine the spatial and dynamic implications of policies aimed at encouraging carbon sequestra... more We examine the spatial and dynamic implications of policies aimed at encouraging carbon sequestration in agricultural soils. We consider incentive mechanisms to encourage the planting of energy multi-annual crops that allow higher carbon sequestration rates for a longer period of time. By using a dynamic micro-economic model, we simulate the sequence of crop plantings over a given time horizon and investigate different payment mechanisms (per-ton or per-hectare). We discuss their implications in terms of regulation policy and efficiency. This model is then applied to the Central Plains of Thessaly, Greece, to assess the marginal costs of carbon sequestration and the optimal timing of switching to multi-annual energy crops. To do so, we couple the dynamic microeconomic model with a carbon accounting model and a geophysical database. We provide an assessment of the potential loss of efficiency related to the use of constant per-hectare payments. We also discuss the dynamic implications of these mechanisms, as well as their results in terms of spatial distribution.
This paper addresses the question of summer cover crop adoption by farmers in presence of a risk ... more This paper addresses the question of summer cover crop adoption by farmers in presence of a risk of yield loss due to take-all disease and climate variability. To analyse the public incentives needed to encourage farmers to adopt summer cover crops as a means of reducing N leaching, we combine outputs from an economic, an epidemiological and an agronomic model. The economic model is a simple model of choice under uncertainty. The farmer is assumed to choose among a range of summer fallow managements and input uses on the basis of the expected utility criterion (HARA assumption) in presence of both climate and take all risks. The epidemiological model proposed by Ennaïfar et al.
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Papers by Stéphane Cara