Relative Efficiency of Sequestering Carbon in Agricultural Soils Through Second Best Instruments

30 Pages Posted: 20 Feb 2000

See all articles by Gregory R. Pautsch

Gregory R. Pautsch

affiliation not provided to SSRN

Bruce A. Babcock

Iowa State University - Department of Economics

Abstract

The total expected cost of sequestering carbon in agricultural soils is estimated under different government-based and market-based policies. A possible government-based EQIP programme offering a per-acre subsidy to adopt conservation illage and a market-based carbon credit programme where producers are given carbon credits to sell in an external market are examined. It was shown that by varying the distribution of carbon credits given to producers, a market-based carbon credit programme can be equivalent to any type of government-based EQIP subsidy programme. The relative efficiency of programmes consisting of a single subsidy or carbon credit is then discussed.

JEL Classification: Q38

Suggested Citation

Pautsch, Gregory R. and Babcock, Bruce A., Relative Efficiency of Sequestering Carbon in Agricultural Soils Through Second Best Instruments. Available at SSRN: https://ssrn.com/abstract=200133 or http://dx.doi.org/10.2139/ssrn.200133

Gregory R. Pautsch (Contact Author)

affiliation not provided to SSRN

Bruce A. Babcock

Iowa State University - Department of Economics ( email )

Heady Hall
578 Heady Hall
Ames, IA 50011-2063
United States

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