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Net Greenhouse Gas Emissions and the Economics of Annual Crop Management Systems
Author(s) -
Samarawickrema Antony K.,
Belcher Ken W.
Publication year - 2005
Publication title -
canadian journal of agricultural economics/revue canadienne d'agroeconomie
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.505
H-Index - 37
eISSN - 1744-7976
pISSN - 0008-3976
DOI - 10.1111/j.1744-7976.2005.00026.x
Subject(s) - greenhouse gas , environmental science , tillage , cropping , profitability index , agricultural engineering , economics , agriculture , agronomy , ecology , engineering , biology , finance
The aim of this study was to evaluate the relative economic profitability and net greenhouse gas (GHG) abatement potential of alternative tillage and cropping systems. A simulation model was parameterized using biophysical and economic data representing different crop rotations under conventional, minimum, and zero tillage cropping systems, in the Black soil zone of Saskatchewan. This model was used to estimate the relative potential of each of the management practices to sequester carbon and to emit GHG including, nitrous oxide and carbon dioxide. The model also provided estimates of the relative profitability of each of the management practices over time horizons of 30 years. These simulation results were used to develop trade‐off functions reflecting net income and net GHG abatement for each cropping system. An income risk measure was incorporated to facilitate an analysis of the relative economic attractiveness of the simulated cropping systems. Furthermore, sensitivity analysis was performed on nitrous oxide emission coefficients (an area of significant uncertainty in the literature) and on weather patterns to reflect uncertain future climate change impacts. Results indicated that net GHG emissions were relatively lower for reduced tillage management, while conventional tillage may be relatively more attractive from an economic perspective. However, results also indicated that such economic factors as risk and economies of size may have a significant influence on this latter result.