IDEAS home Printed from https://ideas.repec.org/p/ags/aare08/6007.html
   My bibliography  Save this paper

Carbon markets, transaction costs and bioenergy

Author

Listed:
  • Cacho, Oscar J.

Abstract

Payment for carbon sequestration by agriculture and forestry can provide incentives for adoption of sustainable agricultural practices. However, a project involving contracts with farmers may face high transaction costs in showing that net emission reductions are real and attributable to the project. This paper presents a model of project participation that includes transaction and abatement costs. A project feasibility frontier (PFF) is derived, which shows the minimum project size that is feasible for any given market price of carbon. The PFF is used to analyse how the design of a climate mitigation program may affect the feasibility of actual projects.

Suggested Citation

  • Cacho, Oscar J., 2008. "Carbon markets, transaction costs and bioenergy," 2008 Conference (52nd), February 5-8, 2008, Canberra, Australia 6007, Australian Agricultural and Resource Economics Society.
    • Handle: RePEc:ags:aare08:6007
    DOI: 10.22004/ag.econ.6007
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/6007/files/cp08ca02.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.6007?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Franck Lecocq & Karan Capoor, "undated". "State and Trends of the Carbon Market 2003," World Bank Publications - Reports 13416, The World Bank Group.
    2. Karan Capoor & Philippe Ambrosi, "undated". "State and Trends of the Carbon Market 2006," World Bank Publications - Reports 13408, The World Bank Group.
    3. Oscar Cacho & Leslie Lipper, 2006. "Abatement and Transaction Costs of Carbon-Sink Projects Involving Smallholders," Working Papers 06-13, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA).
    4. John M. Antle & Roberto O. Valdivia, 2006. "Modelling the supply of ecosystem services from agriculture: a minimum‐data approach," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 50(1), pages 1-15, March.
    5. Oscar J. Cacho & Robyn L. Hean & Russell M. Wise, 2003. "Carbon‐accounting methods and reforestation incentives," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 47(2), pages 153-179, June.
    6. Cacho, Oscar & Lipper, Leslie, 2006. "Abatement and transaction costs of carbon-sink projects involving smallholders," ESA Working Papers 289054, Food and Agriculture Organization of the United Nations, Agricultural Development Economics Division (ESA).
    7. Cacho, Oscar J. & Marshall, Graham R. & Milne, Mary, 2003. "Smallholder agroforestry projects: Potential for carbon sequestration and poverty alleviation," ESA Working Papers 289093, Food and Agriculture Organization of the United Nations, Agricultural Development Economics Division (ESA).
    8. Franck Lecocq, 2005. "State and Trends of the Carbon Market—2004," World Bank Publications - Books, The World Bank Group, number 7457.
    9. Oscar Cacho & Russell Wise & Kenneth MacDicken, 2004. "Carbon Monitoring Costs and their Effect on Incentives to Sequester Carbon through Forestry," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 9(3), pages 273-293, July.
    10. Karan Capoor & Philippe Ambrosi, "undated". "State and Trends of the Carbon Market 2006," World Bank Publications - Reports 13409, The World Bank Group.
    11. Cacho, Oscar J. & Marshall, Graham R. & Milne, Mary, 2005. "Transaction and abatement costs of carbon-sink projects in developing countries," Environment and Development Economics, Cambridge University Press, vol. 10(5), pages 597-614, October.
    12. Karan Capoor & Philippe Ambrosi, "undated". "State and Trends of the Carbon Market 2007," World Bank Publications - Reports 13407, The World Bank Group.
    13. Karan Capoor & Philippe Ambrosi, "undated". "State and Trends of the Carbon Market 2007," World Bank Publications - Reports 13406, The World Bank Group.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. John F. Raffensperger, 2020. "A price on warming with a supply chain directed market," Papers 2003.05114, arXiv.org, revised Mar 2021.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Oscar Cacho & Leslie Lipper, 2006. "Abatement and Transaction Costs of Carbon-Sink Projects Involving Smallholders," Working Papers 06-13, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA).
    2. Cacho, Oscar J. & Lipper, Leslie, 2007. "Abatement and Transaction Costs of Carbon-Sink Projects Involving Smallholders," Climate Change Modelling and Policy Working Papers 9324, Fondazione Eni Enrico Mattei (FEEM).
    3. Cacho, Oscar J. & Lipper, Leslie & Moss, Jonathan, 2013. "Transaction costs of carbon offset projects: A comparative study," Ecological Economics, Elsevier, vol. 88(C), pages 232-243.
    4. Jinshan Zhu & Hui Yao & Yingkai Tang & Liyong Wang, 2015. "An econometric analysis of sub-national Clean Development Mechanism performance in China," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 20(7), pages 1137-1153, October.
    5. Bryan, Elizabeth & Akpalu, Wisdom & Yesuf, Mahmud & Ringler, Claudia, 2008. "Global carbon markets: Are there opportunities for Sub-Saharan Africa?," IFPRI discussion papers 832, International Food Policy Research Institute (IFPRI).
    6. Stefan Schleicher & Claudia Kettner-Marx & Angela Köppl & Barbara Anzinger & Bernhard Cemper & Andreas Türk & Andreas Karner, 2011. "Analysis of Options to Move Beyond 20 Percent Greenhouse Gas Emission Reductions. Background and Evaluation of Impact Documents," WIFO Studies, WIFO, number 41607.
    7. Christoph Böhringer & Thomas Rutherford & Marco Springmann, 2015. "Clean-Development Investments: An Incentive-Compatible CGE Modelling Framework," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 60(4), pages 633-651, April.
    8. Wise, Russell M. & Cacho, Oscar J., 2008. "Bioeconomic meta-modelling of Indonesian agroforests as carbon sinks," 2008 Conference (52nd), February 5-8, 2008, Canberra, Australia 6772, Australian Agricultural and Resource Economics Society.
    9. Hong, Jin & Guo, Xiumei & Marinova, Dora & Yang, Fengli & Yu, Wentao, 2013. "Clean development mechanism in China: Regional distribution and prospects," Mathematics and Computers in Simulation (MATCOM), Elsevier, vol. 93(C), pages 151-163.
    10. Sonja Peterson, 2008. "Greenhouse gas mitigation in developing countries through technology transfer?: a survey of empirical evidence," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 13(3), pages 283-305, March.
    11. Emily Anderson & Hisham Zerriffi, 2012. "Seeing the trees for the carbon: agroforestry for development and carbon mitigation," Climatic Change, Springer, vol. 115(3), pages 741-757, December.
    12. Lee, Jean, 2017. "Farmer participation in a climate-smart future: Evidence from the Kenya Agricultural Carbon Project," Land Use Policy, Elsevier, vol. 68(C), pages 72-79.
    13. Russell Wise & Graham Maltitz & Robert Scholes & Chris Elphinstone & Renee Koen, 2009. "Estimating carbon in savanna ecosystems: rational distribution of effort," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 14(7), pages 579-604, October.
    14. Bohringer, Christoph & Rutherford, Thomas F. & Springmannc, Marco, 2013. "Clean-development investments : an incentive-compatible CGE modeling framework," Policy Research Working Paper Series 6720, The World Bank.
    15. Resnier, Martin & Wang, Can & Du, Pengfei & Chen, Jining, 2007. "The promotion of sustainable development in China through the optimization of a tax/subsidy plan among HFC and power generation CDM projects," Energy Policy, Elsevier, vol. 35(9), pages 4529-4544, September.
    16. Raitzer, David A., 2010. "Assessing the Impact of Policy-Oriented Research: The Case of CIFOR's Influence on the Indonesian Pulp and Paper Sector," World Development, Elsevier, vol. 38(10), pages 1506-1518, October.
    17. Allwardt, Jennifer, 2011. "Carbon Credit Payment Options for Agroforestry Projects in Africa," Graduate Research Master's Degree Plan B Papers 118497, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    18. Skidmore, Samuel & Santos, Paulo & Leimona, Beria, 2012. "Seeing REDD: A Microeconomic Analysis of Carbon Sequestration in Indonesia," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126688, International Association of Agricultural Economists.
    19. Melisa Pollak & Elizabeth J. Wilson, 2009. "Risk governance for geological storage of CO 2 under the Clean Development Mechanism," Climate Policy, Taylor & Francis Journals, vol. 9(1), pages 71-87, January.
    20. Hayashi, Daisuke & Huenteler, Joern & Lewis, Joanna I., 2018. "Gone with the wind: A learning curve analysis of China's wind power industry," Energy Policy, Elsevier, vol. 120(C), pages 38-51.

    More about this item

    Keywords

    Environmental Economics and Policy;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:aare08:6007. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aaresea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.