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Does carbon farming provide a cost‐effective option to mitigate GHG emissions? Evidence from China

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  • Kai Tang
  • Chuantian He
  • Chunbo Ma
  • Dong Wang

Abstract

In this study, we apply a whole farm bioeconomic analysis to explore the changes in land use, farm practices and on‐farm greenhouse gas (GHG) emission under varying levels of agricultural greenhouse gas abatement incentives in the form of a carbon tax for a semi‐arid crop‐livestock farming system in China's Loess Plateau. Our results show that the optimised agricultural enterprises move towards being cropping‐dominated reducing on‐farm emission since livestock perform is the major source of emission. Farmers employ less oats‐based and rapeseed‐based rotations but more dry pea‐based rotations in the optimal enterprise mix. A substantial reduction in on‐farm greenhouse gas emission can be achieved at low cost with a small increase in carbon incentives. Our estimates indicate that crop‐livestock farmers in China's Loess Plateau may reduce their on‐farm GHG emission between 16.6 and 33 per cent with marginal abatement costs

Suggested Citation

  • Kai Tang & Chuantian He & Chunbo Ma & Dong Wang, 2019. "Does carbon farming provide a cost‐effective option to mitigate GHG emissions? Evidence from China," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 63(3), pages 575-592, July.
    • Handle: RePEc:bla:ajarec:v:63:y:2019:i:3:p:575-592
    DOI: 10.1111/1467-8489.12306
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    Cited by:

    1. Nawab Khan & Ram L. Ray & Hazem S. Kassem & Muhammad Ihtisham & Abdullah & Simplice A. Asongu & Stephen Ansah & Shemei Zhang, 2021. "Toward Cleaner Production: Can Mobile Phone Technology Help Reduce Inorganic Fertilizer Application? Evidence Using a National Level Dataset," Land, MDPI, vol. 10(10), pages 1-19, September.
    2. Tang, Kai & Hailu, Atakelty, 2020. "Smallholder farms’ adaptation to the impacts of climate change: Evidence from China’s Loess Plateau," Land Use Policy, Elsevier, vol. 91(C).
    3. Zhen, Wei & Qin, Quande & Miao, Lu, 2023. "The greenhouse gas rebound effect from increased energy efficiency across China's staple crops," Energy Policy, Elsevier, vol. 173(C).
    4. Wu, Jianxin & Ma, Chunbo & Tang, Kai, 2019. "The static and dynamic heterogeneity and determinants of marginal abatement cost of CO2 emissions in Chinese cities," Energy, Elsevier, vol. 178(C), pages 685-694.
    5. Hu, Shuo & Wang, Ailun & Du, Kerui, 2023. "Environmental tax reform and greenwashing: Evidence from Chinese listed companies," Energy Economics, Elsevier, vol. 124(C).
    6. Yu, Yantuan & Tang, Kai, 2023. "Does financial inclusion improve energy efficiency?," Technological Forecasting and Social Change, Elsevier, vol. 186(PA).
    7. Kai Tang & Qianbo Chen & Weijie Tan & Yi Jun Wu Feng, 2022. "The Impact of Financial Deepening on Carbon Reductions in China: Evidence from City- and Enterprise-Level Data," IJERPH, MDPI, vol. 19(18), pages 1-15, September.
    8. Cezary A. Kwiatkowski & Małgorzata Pawłowska & Elżbieta Harasim & Lucjan Pawłowski, 2023. "Strategies of Climate Change Mitigation in Agriculture Plant Production—A Critical Review," Energies, MDPI, vol. 16(10), pages 1-27, May.
    9. Wu, Jianxin & Xu, Hui & Tang, Kai, 2021. "Industrial agglomeration, CO2 emissions and regional development programs: A decomposition analysis based on 286 Chinese cities," Energy, Elsevier, vol. 225(C).
    10. Kai Tang, 2022. "The Effect of Left-Behind Women on Fertilizer Use: Evidence from China’s Rural Households Engaging in Rural-Urban Migration," IJERPH, MDPI, vol. 20(1), pages 1-12, December.
    11. Twecan, Dalson & Wang, Weiguang & Xu, Junzeng & Mohmmed, Alnail, 2022. "Climate change vulnerability, adaptation measures, and risk perceptions at households level in Acholi sub-region, Northern Uganda," Land Use Policy, Elsevier, vol. 115(C).
    12. Di Zhou & Xiaoyu Liang & Ye Zhou & Kai Tang, 2020. "Does Emission Trading Boost Carbon Productivity? Evidence from China’s Pilot Emission Trading Scheme," IJERPH, MDPI, vol. 17(15), pages 1-16, July.

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