Abstract
This paper addresses the assessment of greenhouse gas emissions from agriculture. The analysis focuses on the shadow prices associated with the reductions in the net emissions, taking into account the carbon sequestration by soils and trees. These estimates are based on a set of farm-unit linear programming models representing the French agricultural sector. The distribution of the shadow prices over farm types is discussed and the importance of allowing afforestation on set-aside land to achieve a cost-effective reduction in net emissions is highlighted. However, allowing afforestation on set-aside land may increase inequality in terms of revenue losses for farmers.
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