Greenhouse Gas Emissions and Technical Efficiency in Alberta Dairy Production: What Are the Trade-Offs?

Stephanie Le,Scott Jeffrey,Henry An

doi:10.1017/aae.2019.41

Stephanie Le, Scott Jeffrey + Show 1 more

Open Access

https://doi.org/10.1017/aae.2019.41

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Abstract

Abstract:The impact of greenhouse gas (GHG) reduction on the efficiency of Alberta’s dairy industry is assessed through a technical efficiency analysis over the period 1996–2016, with and without emissions included as a “bad” output. Environmentally adjusted technical efficiency and technical efficiency estimates are highly correlated; thus, reducing GHG emissions may not result in decreased efficiency. Increased milk per cow, a southern Alberta location, and increased use of forage are associated with greater environmentally adjusted technical efficiency. The opportunity cost of foregone milk revenue associated with reduced emissions is Can$308.29 per metric ton of GHG. The results imply possible policy strategies to reduce emissions.

Highlights

The dairy sector is a significant contributor to Canada’s agricultural economy and the Canadian diet—more than 8 billion kg of milk are produced in Canada annually (Canadian Dairy Information Centre, 2019)
Production of enteric methane, which comprises the majority of dairy farm–level greenhouse gas (GHG) emissions, represents a loss of energy that could have been used toward production
Efficiency estimates from the model that includes GHGs are denoted as environmentally adjusted technical efficiency, whereas efficiency estimates from the model without GHGs are referred to as technical efficiency

Summary

Introduction

The dairy sector is a significant contributor to Canada’s agricultural economy and the Canadian diet—more than 8 billion kg of milk are produced in Canada annually (Canadian Dairy Information Centre, 2019). Dairy production has a significant carbon footprint; at the farm level, approximately 1 kg of carbon dioxide (CO2) equivalents is released per kilogram of milk produced in Canada (Vergé et al, 2007). Under Alberta’s Agricultural Carbon Offset Program, for example, farmers adopting GHG mitigation practices can receive carbon offset credits (Alberta Environment, 2010). There is a large body of research showing that GHG mitigating practices in the dairy industry can increase production levels. These practices indirectly affect per unit emissions through increasing/improving milk yield, feed efficiency, or animal health. Strategies to inhibit methanogens include feeding lipids, more digestible diets, and antimicrobials such as ionophores, nitrates, dicarboxylic acids, and bacteriocins (Cottle and Wiedemann, 2011)

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