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Greenhouse gas and groundwater recharge abatement benefits of tree crops in south‐western Australian farming systems

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  • Elizabeth Petersen
  • Steven Schilizzi
  • David Bennett

Abstract

The indirect benefits of a commercial tree crop for greenhouse gas and groundwater recharge abatement are analysed. Oil mallees are introduced into a whole‐farm linear programming model as a source of income, an offset to greenhouse gas emissions from the mixed sheep and cropping enterprises and as a source of groundwater recharge abatement. The profitability of oil mallees is found to be very sensitive to the discount rate, yield and price assumptions and the relative profitability of other farm enterprises (especially the wool enterprise). Under standard assumptions where oil mallees are profitable, the trees significantly reduced greenhouse gas emissions and groundwater recharge and the farm remains profitable. If farm‐level policies are introduced for greenhouse gas abatement, without tree crops or some other technological change, the current farming systems would fail and be replaced by alternative land uses.

Suggested Citation

  • Elizabeth Petersen & Steven Schilizzi & David Bennett, 2003. "Greenhouse gas and groundwater recharge abatement benefits of tree crops in south‐western Australian farming systems," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 47(2), pages 211-231, June.
    • Handle: RePEc:bla:ajarec:v:47:y:2003:i:2:p:211-231
    DOI: 10.1111/1467-8489.00210
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    References listed on IDEAS

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    1. David J. Pannell, 1996. "Lessons from a Decade of Whole-Farm Modeling in Western Australia," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 18(3), pages 373-383.
    2. Schilizzi, S. G. M. & Kingwell, R. S., 1999. "Effects of climatic and price uncertainty on the value of legume crops in a Mediterranean-type environment," Agricultural Systems, Elsevier, vol. 60(1), pages 55-69, May.
    3. Schmidt, Carmel P & Pannell, David J, 1996. "Economic Issues in Management of Herbicide-Resistant Weeds," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 64(03), pages 1-8, December.
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    1. Tas Thamo & David J. Pannell & Marit E. Kragt & Michael J. Robertson & Maksym Polyakov, 2017. "Dynamics and the economics of carbon sequestration: common oversights and their implications," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 22(7), pages 1095-1111, October.
    2. Thamo, Tas & Addai, Donkor & Kragt, Marit E. & Kingwell, Ross S. & Pannell, David J. & Robertson, Michael J., 2019. "Climate change reduces the mitigation obtainable from sequestration in an Australian farming system," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 63(4), October.
    3. Alford, Andrew & Garcia, S.C. & Farina, Santiago & Fulkerson, Bill, 2009. "An Economic Evaluation of the FutureDairy Complementary Forage Rotation System - Using Cost Budgeting," Research Reports 280786, New South Wales Department of Primary Industries Research Economists.

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