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An Overview of Carbon Offsets from Agriculture

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  • Gonzalez-Remirez, Jimena
  • Kling, Catherine L.
  • Valcu-Lisman, Adriana

Abstract

Although climate change has largely been removed from the federal policy agenda of the United States in the near term, the continued reliance on fossil fuels as a dominant energy source leaves many analysts to conclude that climate policy will eventually reappear on that agenda. We present a review of recent research related to the design and implementation of one instrument for greenhouse gas (GHG) reduction: offsets. As these are implemented, policy makers must understand the way these programs work. In this review, we describe the basic features of carbon offset markets, along with the potential supply of offsets from agricultural sources and associated cost considerations. In this discussion we highlight the role of institutional design of contracts and transactions costs. We then turn to the benefits of including offsets in policies to reduce GHGs and complete the review with a discussion of the challenges in implementing the programs.

Suggested Citation

  • Gonzalez-Remirez, Jimena & Kling, Catherine L. & Valcu-Lisman, Adriana, 2012. "An Overview of Carbon Offsets from Agriculture," ISU General Staff Papers 201201010800001559, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genstf:201201010800001559
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    18. repec:ags:inpuer:188962 is not listed on IDEAS
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    2. Wei, Yu & Wang, Yizhi & Vigne, Samuel A. & Ma, Zhenyu, 2023. "Alarming contagion effects: The dangerous ripple effect of extreme price spillovers across crude oil, carbon emission allowance, and agriculture futures markets," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 88(C).
    3. Hai-Ying Gu & Qing-Mi Hu & Tian-Qiong Wang, 2019. "Payment for Rice Growers to Reduce Using N Fertilizer in the GHG Mitigation Program Driven by the Government: Evidence from Shanghai," Sustainability, MDPI, vol. 11(7), pages 1-17, April.
    4. Koen Deconinck & Marion Jansen & Carla Barisone, 2023. "Fast and furious: the rise of environmental impact reporting in food systems," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 50(4), pages 1310-1337.
    5. Tiberio Daddi & Niccolò Maria Todaro & Maria Rosa De Giacomo & Marco Frey, 2018. "A Systematic Review of the Use of Organization and Management Theories in Climate Change Studies," Business Strategy and the Environment, Wiley Blackwell, vol. 27(4), pages 456-474, May.

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    JEL classification:

    • Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics
    • R - Urban, Rural, Regional, Real Estate, and Transportation Economics

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