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Will Southern Agriculture Play a Role in a Carbon Market?

Author

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  • Zeuli, Kimberly A.
  • Skees, Jerry R.

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.

Suggested Citation

  • Zeuli, Kimberly A. & Skees, Jerry R., 2000. "Will Southern Agriculture Play a Role in a Carbon Market?," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 32(2), pages 235-248, August.
    • Handle: RePEc:cup:jagaec:v:32:y:2000:i:02:p:235-248_02
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    Cited by:

    1. Ribaudo, Marc & Greene, Catherine & Hansen, LeRoy & Hellerstein, Daniel, 2010. "Ecosystem services from agriculture: Steps for expanding markets," Ecological Economics, Elsevier, vol. 69(11), pages 2085-2092, September.
    2. Canales, Elizabeth & Bergtold, Jason S. & Williams, Jeffery & Peterson, Jeffrey, 2015. "Estimating farmers’ risk attitudes and risk premiums for the adoption of conservation practices under different contractual arrangements: A stated choice experiment," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205640, Agricultural and Applied Economics Association.
    3. Charles A. Zelek & Gerald E. Shively, 2003. "Measuring the Opportunity Cost of Carbon Sequestration in Tropical Agriculture," Land Economics, University of Wisconsin Press, vol. 79(3), pages 342-354.

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