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1	Economic analysis of soil carbon sequestration: Dynamic model on corn and soybean in the Midwest US Suk-won Choi & Brent Sohngen Agricultural, Environmental, and Development Economics The Ohio State University March 23, 2005 Third USDA Symposium on Greenhouse Gases & Carbon Sequestration in Agriculture and Forestry March 21-24, 2005 Baltimore, MD
2	Motivation
3	Carbon could be lost when land is tilled.
4	Model Maximizes net present value of market welfare in crop production for 40 years
5	"Choices:" Choices: crop type (corn and soybean only), tillage intensity (residue %), input levels, shifts between conservation and convention use Rotations determined endogenously. Allow continuous corn or soybean, and multiple rotations across those types.
6	"Crop yields depend on inputs" Crop yields depend on inputs, tillage intensity, and length of time land in specific type of crop. 16 general soil regions in OH-IN-IL, 3 productivity levels within each region.
7	Baseline Results for Region
8	Carbon Rental Results
9	What’s possible and where?
10	Alternative Payment Types? Carbon rental pays only for tons gained when they are gained. Alternative 1: Pay $ per hectare for land maintained above 35% residue level forever. Alternative 2: Pay $ per hectare for land maintained above 75% residue level forever.
11	Carbon Under Alternatives
12	Alternatives: Where would the carbon projects occur?
13	Comparison of Results