Carbon Sequestration in Soil with Consideration of CO2 Emissions from Production Inputs: An Economic Analysis

Abstract

An economic analysis of wheat and grain sorghum production systems that affect carbon dioxide (CO2) emissions and sequester soil carbon (C) in metric tons (MT) is conducted. Expected net returns, changes in net C sequestered, and the value of C credits necessary to equate net returns from systems that sequester more C with those that sequester less is determined with and without adjustments for CO2 emissions from production inputs. Experiment station cropping practices, yield data, and soil C data for continuously cropped and rotated wheat and grain sorghum produced with conventional tillage and no-tillage are used. No-till has lower net returns because of somewhat lower yields and higher overall costs. Both crops produced under no-till have higher annual soil C gains than under conventional tillage. However, no-till systems have somewhat higher total atmospheric emissions of C from production inputs. The C credit values estimated in this study will equate net returns of no-tillage to conventional tillage range from $8.62 to $64.65/MT/yr when C emissions from production inputs are subtracted from soil C sequestered, and $8.59 to $60.54/MT/yr when atmospheric emissions are not considered. This indicates accounting for CO2 emissions from production inputs may not be necessary in the process to issue C credits.