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Modeling Pine as a Carbon-Sequestering Crop in Arkansas

Author

Listed:
  • Smith, S. Aaron
  • Popp, Michael P.
  • Nalley, L. Lanier
  • Brye, Kristofor R.

Abstract

This study estimates the impact of carbon offset payments on land use choices, net producer returns, and carbon sequestration. Loblolly pine is added to traditional cropping choices as a designated carbon-sequestering crop. With a carbon offset price of $15 per ton, pine enters land use on 10 percent of pasture acres. At $30, loblolly pine significantly increases in acreage in areas traditionally planted in row crops. The analysis suggests that the addition of pine as a carbon-sequestering crop can affect land use, add to producer returns, and sequester additional carbon relative to producer choice sets that exclude pine.

Suggested Citation

  • Smith, S. Aaron & Popp, Michael P. & Nalley, L. Lanier & Brye, Kristofor R., 2012. "Modeling Pine as a Carbon-Sequestering Crop in Arkansas," Agricultural and Resource Economics Review, Cambridge University Press, vol. 41(2), pages 232-246, August.
    • Handle: RePEc:cup:agrerw:v:41:y:2012:i:02:p:232-246_00
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    References listed on IDEAS

    as
    1. Wailes, Eric J. & Chavez, Eddie C., 2010. "Updated Arkansas Global Rice Model," Staff Papers 94347, University of Arkansas, Department of Agricultural Economics and Agribusiness.
    2. Hardie, Ian W., 1984. "Comparative Rents for Farmland and Timberland in a Subregion of the South," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 16(2), pages 45-54, December.
    3. Popp, Michael P. & Nalley, Lawton Lanier & Vickery, Gina B., 2008. "Expected Changes in Farm Landscape with the Introduction of a Biomass Market," Environmental and Rural Development Impacts Conference, October 15-16, 2008, St. Louis, Missouri 53501, Farm Foundation, Transition to a Bio Economy Conferences.
    4. Hardie, Ian W., 1984. "Comparative Rents For Farmland And Timberland In A Subregion Of The South," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 16(2), pages 1-9, December.
    5. Nalley, Lawton Lanier & Popp, Michael P., 2010. "Modeling the Effects of Cap and Trade and a Carbon Offset Policy on Crop Allocations and Farm Income," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 60931, Agricultural and Applied Economics Association.
    6. Popp, Michael & Nalley, Lanier & Vickery, Gina, 2010. "Irrigation Restriction and Biomass Market Interactions: The Case of the Alluvial Aquifer," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 42(1), pages 69-86, February.
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