Small-scale farms in the western Brazilian Amazon: can they benefit from carbon trade?

Recently scientists have started to examine how land-uses and land-use technologies can help mitigate carbon emissions. The half million small-scale farmers inhabiting the Amazon frontier sequester large stocks of carbon in their forests and other land uses that they might be persuaded to maintain or even increase through the Clean Development Mechanism (CDM) of the Kyoto Protocol. On average, small-scale farmers in the Pedro Peixoto settlement project of Acre (Western Brazilian Amazon), had a stock of 10,067 tons of above- and below-ground carbon on their farms in 1994, 88 percent of which was stored in their forest reserves. The income and carbon mitigation effects of three types of carbon payments are analyzed in this paper: (1) above- or total-carbon stock payments paid for carbon retained in the forest or stored in all land-uses, (2) above- or total-carbon flow payments paid for carbon stored in all land-uses, and (3) above- or total-carbon net stock payments paid for carbon stored in all land-uses. The main conclusions are that carbon payments can be effective in preserving forest and carbon, but should be based on carbon stocks or net carbon stock rather than carbon flows. Payments tied to forest carbon or carbon in all land-uses provide inexpensive carbon offset potential, and payments based on total instead of above-ground carbon only slightly dilute the forest preservation effect of carbon payments. One-time carbon payments as low as R$15/t of carbon stock would preserve half of the existing forest carbon on these farms. Carbon flow payments, on the other hand, do not provide an adequate economic incentive to slow deforestation because forests are more or less in equilibrium and thus do not sequester additional carbon. If the Kyoto Protocol were amended to allow for conservation of forest carbon, a few potential CDMs could provide inexpensive carbon offsets, alleviate poverty, and preserve biodiversity. Sustainable forest management, for instance, increases both farm income and carbon and forest preservation and could provide inexpensive carbon offsets. Other projects could also provide inexpensive carbon offsets and preserve biodiversity, but would require additional income and technology transfers to compensate farmers for their lost incomes.Land use., Brazil Economic policy.,

Spatial Dynamics of the Livestock Sector in the United States: Do Environmental Regulations Matter?

This study examines the factors affecting state annual share of national inventory for each of the hog, dairy, and fed-cattle sectors using data from the 48 contiguous states for 1976 to 2000. The paper develops a state specific, time-series environmental stringency measure and introduces instrumental variables to control for the possible endogeneity bias between livestock production decisions and regulatory stringency. The results indicate that differences in the severity of environmental regulations facing livestock producers have had a significant influence on production decisions in the dairy, and particularly the hog sector.environmental regulation stringency, fixed-effects model, instrumental variable, livestock production, location choice, panel data analysis, pollution havens, Environmental Economics and Policy,

can they benefit from carbon trade?

Recently scientists have started to examine how land-uses and land-use technologies can help mitigate carbon emissions. The half million small-scale farmers inhabiting the Amazon frontier sequester large stocks of carbon in their forests and other land uses that they might be persuaded to maintain or even increase through the Clean Development Mechanism (CDM) of the Kyoto Protocol. On average, small-scale farmers in the Pedro Peixoto settlement project of Acre (Western Brazilian Amazon), had a stock of 10,067 tons of above- and below-ground carbon on their farms in 1994, 88 percent of which was stored in their forest reserves. The income and carbon mitigation effects of three types of carbon payments are analyzed in this paper: (1) above- or total-carbon stock payments paid for carbon retained in the forest or stored in all land-uses, (2) above- or total-carbon flow payments paid for carbon stored in all land-uses, and (3) above- or total-carbon net stock payments paid for carbon stored in all land-uses. The main conclusions are that carbon payments can be effective in preserving forest and carbon, but should be based on carbon stocks or net carbon stock rather than carbon flows. Payments tied to forest carbon or carbon in all land-uses provide inexpensive carbon offset potential, and payments based on total instead of above-ground carbon only slightly dilute the forest preservation effect of carbon payments. One-time carbon payments as low as R$15/t of carbon stock would preserve half of the existing forest carbon on these farms. Carbon flow payments, on the other hand, do not provide an adequate economic incentive to slow deforestation because forests are more or less in equilibrium and thus do not sequester additional carbon. If the Kyoto Protocol were amended to allow for conservation of forest carbon, a few potential CDMs could provide inexpensive carbon offsets, alleviate poverty, and preserve biodiversity. Sustainable forest management, for instance, increases both farm income and carbon and forest preservation and could provide inexpensive carbon offsets. Other projects could also provide inexpensive carbon offsets and preserve biodiversity, but would require additional income and technology transfers to compensate farmers for their lost incomes.Non-PRIFPRI1EPT

Agriculture and the environment : an economic-ecologic input-output model of the Canadian economy

The current environmental movement calls for a re-evaluation of many economic-ecologic relationships. The objective of this study is to identify industrial sectors and final demands most responsible for particular types of residual discharge and resource use. An economic-ecologic model was constructed for the Canadian economy from the Statistics Canada I-O as modified by Thomassin et al. (1992). This modified version with its 12 agricultural sectors and 16 food processing sectors is best suited for agricultural policy analysis. The model estimates national erosion, pesticide and fertilizer use as well as air and water pollutants, solid waste, and water use associated with specified economic activities.Two different scenarios were analyzed. In the first, the impact on both the economy and the environment from changes in the final demand for agricultural and food commodities was simulated. Each commodity's final demand was increased by $1 million and its impact compared to the other simulated results. The ten commodities studied yielded similar economic impacts, while their environmental impacts differed considerably. Changes in the demand for wheat and oilseeds had the largest environmental impacts.In the second scenario, the effects of a$1 million increase in each final demand category were compared. This scenario focussed on markets rather than products. The construction, exports and personal expenditures categories were the greatest generator of wastes and the largest user of free resources. The exports category yielded twice as much erosion than personal expenditures and twenty times more than the next highest value (construction)

On the Effectiveness of State Anti-Corporate Farming Laws in the United States

Structural changes in US agriculture toward a more corporate-oriented and vertically aligned system have focused attention on the relative efficacy of the anti-corporate farming laws of nine Midwestern states. Using state-level data from a survey of agricultural lawyers and the U.S. Census of Agriculture, we find that the restrictiveness of the laws vary among states, and the relative restrictiveness of the laws have changed over time. Also, strengthening a law tends to limit acreage under non-family corporate ownership arrangements

Agro-food system restructuring and the geographic concentration of US swine production

The US swine industry has dramatically reorganized over the last two decades. Economic concentration in the slaughter sector has increased and hog production has consolidated economically and geographically. Increases in the geographic concentration of hog production have led to water pollution through spills and leakage from high numbers of very large manure storage lagoons centered within limited areas, such as a few counties. The global restructuring of agro-food systems has promoted the development of intensive and concentrated livestock production. However, national, state and local institutions, and dynamics have also influenced the structure of geographic concentration of hog production. Using state-level and national-level time series data from 1975 - 1996, we find that national-level increases in concentration in the hog-processing sector are positively associated with geographic concentration of production within states. However, we also find that state, and even local, government policy can mitigate, or worsen, the geographic concentration of hog production.

SMALL-SCALE FARMS IN THE WESTERN BRAZILIAN AMAZON: CAN THEY BENEFIT FROM CARBON TRADE?

Recently scientists have started to examine how land-uses and land-use technologies can help mitigate carbon emissions. The half million small-scale farmers inhabiting the Amazon frontier sequester large stocks of carbon in their forests and other land uses that they might be persuaded to maintain or even increase through the Clean Development Mechanism (CDM) of the Kyoto Protocol. On average, small-scale farmers in the Pedro Peixoto settlement project of Acre (Western Brazilian Amazon), had a stock of 10,067 tons of above- and below-ground carbon on their farms in 1994, 88 percent of which was stored in their forest reserves. The income and carbon mitigation effects of three types of carbon payments are analyzed in this paper: (1) above- or total-carbon stock payments paid for carbon retained in the forest or stored in all land-uses, (2) above- or total-carbon flow payments paid for carbon stored in all land-uses, and (3) above- or total carbon net stock payments paid for carbon stored in all land-uses. The main conclusions are that carbon payments can be effective in preserving forest and carbon, but should be based on carbon stocks or net carbon stock rather than carbon flows. Payments tied to forest carbon or carbon in all land-uses provide inexpensive carbon offset potential, and payments based on total instead of above-ground carbon only slightly dilute the forest preservation effect of carbon payments. One-time carbon payments as low as R$15/t of carbon stock would preserve half of the existing forest carbon on these farms. Carbon flow payments, on the other hand, do not provide an adequate economic incentive to slow deforestation because forests are more or less in equilibrium and thus do not sequester additional carbon. If the Kyoto Protocol were amended to allow for conservation of forest carbon, a few potential CDMs could provide inexpensive carbon offsets, alleviate poverty, and preserve biodiversity. Sustainable forest management, for instance, increases both farm income and carbon and forest preservation and could provide inexpensive carbon offsets. Other projects could also provide inexpensive carbon offsets and preserve biodiversity, but would require additional income and technology transfers to compensate farmers for their lost incomes

EPTD DISCUSSION PAPER NO. 67 SMALL-SCALE FARMS IN THE WESTERN BRAZILIAN AMAZON: CAN THEY BENEFIT FROM CARBON TRADE?

Recently scientists have started to examine how land-uses and land-use technologies can help mitigate carbon emissions. The half million small-scale farmers inhabiting the Amazon frontier sequester large stocks of carbon in their forests and other land uses that they might be persuaded to maintain or even increase through the Clean Development Mechanism (CDM) of the Kyoto Protocol. On average, small-scale farmers in the Pedro Peixoto settlement project of Acre (Western Brazilian Amazon), had a stock of 10,067 tons of above- and below-ground carbon on their farms in 1994, 88 percent of which was stored in their forest reserves. The income and carbon mitigation effects of three types of carbon payments are analyzed in this paper: (1) above- or total-carbon stock payments paid for carbon retained in the forest or stored in all land-uses, (2) above- or total-carbon flow payments paid for carbon stored in all land-uses, and (3) above- or totalcarbon net stock payments paid for carbon stored in all land-uses. The main conclusions are that carbon payments can be effective in preserving forest and carbon, but should be based on carbon stocks or net carbon stock rather than carbon flows. Payments tied to forest carbon or carbon in all land-uses provide inexpensive carbon offset potential, and payments based on total instead of above-ground carbon only slightly dilute the forest preservation effect of carbon payments. One-time carbon payments as low as R$15/t of carbon stock would preserve half of the existing forest carbon on these farms. Carbon flow payments, on the other hand, do not provide an adequate economic incentive to slow deforestation because forests are more or less in equilibrium and thus do not sequester additional carbon. If the Kyoto Protocol were amended to allo..

AGRICULTURAL INTENSIFICATION BY SMALLHOLDERS IN THE WESTERN BRAZILIAN AMAZON: FROM DEFORESTATION TO SUSTAINABLE LAND USE

Despite the importance of tropical moist forests for conserving biodiversity and storing carbon, forests continue to fall, because the private benefits of clearing land for agriculture far outweigh tangible economic gains from retaining forests. This report measures the financial disparity between forested and cleared land for small-scale farmers in two settlements in the western Brazilian Amazon where pastures are expanding and forests receding. Considering smallholder land use decisionswhen and how much to deforest and for what purposethe report weighs the trade-offs and complementarities among three development objectives: economic growth through agriculture, environmental sustainability, and poverty alleviation. Drawing on field data collected in the mid-1990s, it uses multivariate analysis to explore how factors such as soil quality and market access shape deforestation and use of cleared land. It introduces a farm-level bioeconomic linear programming model to illuminate how such factors influence land use over time, taking into account soil fertility shifts and exploring policy and technology options that give farmers incentives to slow deforestation without decreasing farm household income