Assessing the role of US agriculture in reducing greenhouse gas emissions and generating additional environmental benefits

Abstract

This study measures the changes in Greenhouse Gas (GHG) emissions from US crop production under a scenario where farmers face higher energy prices with the implementation of the Kyoto Protocol. The focus is on predicting the impact on direct and indirect energy, resource use, and measuring the changes in specific GHGs. The study also assesses the potential for additional environmental benefits from the changes in agricultural resource use. The analyses rely on the results from a calibrated mathematical programming model of regional US crop production. The model accounts for input substitution when farmers are faced with external shocks. The results suggest that when energy prices increase, there is a relatively small decrease in total harvested acreage, but a more significant drop in the use of energy-intensive resources. Overall, GHG emissions from US crop production decrease by 20%, suggesting agriculture is more effective in abating GHG emissions than the other sectors of US economy. There is also a good potential for additional positive environmental externalities from the decreases in resources used in crop production.