The Efficiency of Sequestering Carbon in Agricultural Soils

Agricultural tillage practices are important human-induced activities that can alter carbon emissions from agricultural soils and have the potential to significantly contribute to reductions in greenhouse gas emission (Lal et al, 1998). This research investigates the expected costs of sequestering carbon in agricultural soils under different subsidy and market-based policies. Using the detailed National Resources Inventory data, we estimate the probability that farmers adopt conservation tillage practices based on a variety of exogenous characteristics and profit from conventional practices. These estimates are used with physical models of carbon sequestration to estimate the subsidy costs of achieving increased carbon sequestration with alternative subsidy schemes. Disciplines Agricultural and Resource Economics | Agricultural Economics | Economic Policy | Economics | Natural Resource Economics This article is available at Iowa State University Digital Repository: http://lib.dr.iastate.edu/card_workingpapers/279 The Efficiency of Sequestering Carbon in Agricultural Soils Gregory R. Pautsch, Lyubov A. Kurkalova, Bruce A. Babcock, and Catherine L. Kling Working Paper 00-WP 246 August 2000 The Efficiency of Sequestering Carbon in Agricultural Soils Gregory R. Pautsch, Lyubov A. Kurkalova, Bruce A. Babcock, and Catherine L. Kling Working Paper 00-WP 246 August 2000 Center for Agricultural and Rural Development Iowa State University Ames, Iowa 50011-1070 www.card.iastate.edu Gregory R. Pautsch was an associate scientist with the Center for Agricultural and Rural Development (CARD) when this paper was written. Lyubov A. Kurkalova is a post-doctoral research associate; Bruce A. Babcock is director of CARD and professor of economics; and Catherine L. Kling is head of the Resource and Environmental Policy Division and professor of economics, Center for Agricultural and Rural Development, Iowa State University. This is Journal Paper No. J-18435 of the Iowa Agriculture and Home Economics Experiment Station, Ames, Iowa; Project No. 3363, supported by Hatch Act and State of Iowa funds. We thank three referees whose comments significantly improved the modeling framework and exposition. Thanks also go to Todd Campbell for incredible programming assistance and Jinhua Zhao for helpful suggestions. This publication is available online on the CARD website www.card.iastate.edu. Permission is granted to reproduce this information with appropriate attribution to the authors and the Center for Agricultural and Rural Development, Iowa State University, Ames, Iowa 50011-1070. For questions or comments about the contents of this paper, please contact Catherine L. Kling, 568D Heady Hall, Iowa State University, Ames, IA 50011-1070, Ph: 515-294-5767, Fax: 515-294-6336, email: [email protected]. Iowa State University does not discriminate on the basis of race, color, age, religion, national origin, sexual orientation, sex, marital status, disability, or status as a U.S. Vietnam Era Veteran. Any persons having inquiries concerning this may contact the Director of Affirmative Action, 318 Beardshear Hall, 515-294-7612.