Will Southern Agriculture Play a Role in a Carbon Market?

Posted: 8 Oct 2001

See all articles by Kimberly A. Zeuli

Kimberly A. Zeuli

University of Wisconsin - Madison - Department of Agricultural & Applied Economics

Jerry R. Skees

University of Kentucky - College of Agriculture - Department of Agricultural Economics

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.

Key Words: carbon emission reduction, tradable permits, afforestation, conservation tillage, government policy, regional economics

JEL Classification: Q23, Q24, Q25, Q28, R00

Suggested Citation

Zeuli, Kimberly A. and Skees, Jerry R., Will Southern Agriculture Play a Role in a Carbon Market?. Available at SSRN: https://ssrn.com/abstract=244749

Kimberly A. Zeuli (Contact Author)

University of Wisconsin - Madison - Department of Agricultural & Applied Economics ( email )

427 Lorch St.
225 Taylor Hall
Madison, WI 53706-1503
United States
608-263-3981 (Phone)
608-262-3251 (Fax)

Jerry R. Skees

University of Kentucky - College of Agriculture - Department of Agricultural Economics ( email )

Rm 310, Agricultural Engineering Bldg.
Lexington, KY 40546
United States
606-257-7262 (Phone)
606-257-7290 (Fax)

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Abstract Views
705
PlumX Metrics