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Will Southern Agriculture Play a Role in a Carbon Market?

Published online by Cambridge University Press:  28 April 2015

Kimberly A. Zeuli  and
Jerry R. Skees
Kimberly A. Zeuli
Affiliation:
Department of Agricultural Economics, University of Kentucky
Jerry R. Skees
Affiliation:
Department of Agricultural Economics, University of Kentucky
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Abstract

While a carbon market offers substantial opportunities for US agriculture, regional differences in such a market are often ignored. This paper focuses on the advantages and challenges for agriculture in the South. The potential of two promising options are analyzed: conversion from cropland to forests and greater use of conservation tillage. It is argued that the right institutional arrangements can overcome three fundamental challenges to an efficient carbon market: transaction costs, risk, and perverse incentives. Some examples are given, such as the use of a farmer-owned organization and the provision of land use and carbon information by the government.

Keywords

Carbon emission reduction (Q25)tradable permitsafforestation (Q23)conservation tillage (Q24)government policy (Q28)regional economics (R00)
Type
Invited Paper Sessions
Information
Journal of Agricultural and Applied Economics , Volume 32 , Issue 2 , August 2000 , pp. 235 - 248
Copyright
Copyright © Southern Agricultural Economics Association 2000

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