Notes
Slide Show
Outline
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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
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Motivation
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    Carbon could be lost when land is tilled.
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Model
  • Maximizes net present value of market welfare in crop production for 40 years






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"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.


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"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.


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Baseline Results for Region
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Carbon Rental Results
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What’s possible and where?
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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.
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Carbon Under Alternatives
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Alternatives: Where would the carbon projects occur?
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Comparison of Results