Greenhouse Gas Emissions Charges and Credits on Agricultural Land: What Can a Model Tell Us?

17 Pages Posted: 11 Aug 2006

See all articles by Joanna Hendy

Joanna Hendy

Motu Economic and Public Policy Research

Suzi Kerr

Motu Economic and Public Policy Research Trust

Troy Baisden

LandCare Research

Date Written: June 2006

Abstract

Using the simulation model Land Use in Rural New Zealand version 1 - climate (LURNZv1-climate), we simulate the effects of an agricultural land-use emissions charge and a reward for native forest and scrub regeneration. Our results are preliminary and at this stage should be considered illustrative. We find that, on its own, an agricultural emissions charge based on solely on land use would be disruptive and may not be very effective in reducing emissions. In addition, we find that including an additional policy that rewards regenerating forest and scrub without a similar reward for plantation forestry might negatively impact on plantation forestry, increasing emissions growth in the short-run. We are currently developing a second version of LURNZ-climate, which will be more robust and thus lend more weight to our future results.

Keywords: Climate change, land use, methane, nitrous oxide, dairy, sheep, beef, Government

JEL Classification: Q24, Q15, Q18, R14, Q54, Q58

Suggested Citation

Hendy, Joanna and Kerr, Suzi and Baisden, Troy, Greenhouse Gas Emissions Charges and Credits on Agricultural Land: What Can a Model Tell Us? (June 2006). Available at SSRN: https://ssrn.com/abstract=923706 or http://dx.doi.org/10.2139/ssrn.923706

Joanna Hendy (Contact Author)

Motu Economic and Public Policy Research ( email )

Level 1, 93 Cuba Street
P.O. Box 24390
Wellington, 6142
New Zealand

Suzi Kerr

Motu Economic and Public Policy Research Trust ( email )

Level 1, 93 Cuba Street
P.O. Box 24390
Wellington, 6142
New Zealand
+64 4 383 4250 (Phone)
+64 4 383 4270 (Fax)

Troy Baisden

LandCare Research ( email )

No Address Available

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