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A project-based system for including farmers in the EU ETS

Svendsen, Gert Tinggaard and Brandt, Urs Steiner (2011) A project-based system for including farmers in the EU ETS. Journal of Environmental Management, 92, pp. 1121-1127.

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Farmers in the EU do not trade greenhouse gases under the Kyoto agreement. This is an empirical puzzle because agriculture is a significant contributor of greenhouse gases (GHG) in the EU and may harvest private net gains from trade. Furthermore, the US has strongly advocated land-use practices as ‘the missing link’ in past climate negotiations. We argue that farmers have relatively low marginal reduction costs and that consequences in terms of the effect on permit price and technology are overall positive in the EU Emission Trading System (ETS). Thus, we propose a project-based system for including the farming practices in the EU ETS that reduces the uncertainty from measuring emission reduction in this sector. The system encourages GHG reduction either by introducing a new and less polluting practice or by reducing the polluting activity. When doing so, farmers will receive GHG permits corresponding to the amount of reduction which can be stored for later use or sold in the EU ETS.

EPrint Type:Journal paper
Keywords:EU; Greenhouse gases; Emission Trading System; Agriculture; Organic farming.
Subjects: Environmental aspects > Air and water emissions
Research affiliation: Denmark > DARCOF III (2005-2010) > COP - Public policies and demand for organic food
Deposited By: Svendsen, Professor Gert Tinggaard
ID Code:18776
Deposited On:12 May 2011 07:48
Last Modified:18 May 2011 06:48
Document Language:English
Refereed:Peer-reviewed and accepted

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