Carbon offsets and agriculture: Options, obstacles, and opinions
Date
2023
Authors
van Kooten, G. Cornelis
Zanello, Rebecca
Journal Title
Journal ISSN
Volume Title
Publisher
Canadian Journal of Agricultural Economics
Abstract
While carbon offsets in agriculture can play a role in addressing climate change, they are not a perfect substitute for direct emission reductions. As shown in this paper through various arguments and case studies, climate policies in Canada have avoided the use of offsets to be sold in carbon markets, preferring instead to incentivize adoption of best management practices (BMPs) that provide environmental benefits along with climate mitigation benefits. We argue that this is a preferred policy option due to the perils and pitfalls inherent in the measurement and monitoring required to identify offset credits. While an appropriate approach might be to penalize Canadian farmers for any emissions their activities cause, this may do more harm than good. Canadian agricultural production is highly efficient and technologically advanced; therefore, reductions in Canada's contribution to the global food supply will result in less-efficient production occurring elsewhere (i.e., leakage) that increases global greenhouse gas emissions.
Description
Keywords
asymmetric information, best management practices, carbon markets, climate change policy, fertilizer use, livestock
Citation
van Kooten, G. C., & Zanello, R. (2023). Carbon offsets and agriculture: Options, obstacles, and opinions. Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, 71, 375–391. https://doi.org/10.1111/cjag.12340