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2010•RePEc: Research Papers in EconomicsOpen access

MARGINAL ABATEMENT COST CURVES FOR UK AGRICULTURAL GREENHOUSE GAS EMISSIONS

Dominic Moran, Michael MacLeod, E. Wall, Vera Eory, Alistair McVittie, Andrew Barnes, Robert M. Rees, K. Topp, Andrew Moxey, Moran, Dominic, MacLeod, Michael J., Wall, Eileen, Eory, Vera, McVittie, Alistair, Barnes, Andrew Peter, Rees, Robert, Topp, Cairistiona, Moxey, Andrew

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Abstract

This paper addresses the challenge of developing a ‘bottom-up’ marginal abatement cost curve (MACC) for greenhouse gas emissions from UK agriculture. A MACC illustrates the costs of specific crop, soil, and livestock abatement measures against a ‘‘business as usual’’ scenario. The results indicate that in 2022 under a specific policy scenario, around 5.38 MtCO2 equivalent (e) could be abated at negative or zero cost. A further 17% of agricultural GHG emissions (7.85 MtCO2e) could be abated at a lower unit cost than the UK Government’s 2022 shadow price of carbon (£34 (tCO2e)-1). The paper discusses a range of methodological hurdles that complicate cost-effectiveness appraisal of abatement in agriculture relative to other sectors.

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This paper addresses the challenge of developing a ‘bottom-up’ marginal abatement cost curve (MACC) for greenhouse gas emissions from UK agriculture. A MACC illustrates the costs of specific crop, soil, and livestock abatement measures against a ‘‘business as usual’’ scenario. The results indicate that in 2022 under a specific policy scenario, around 5.38 MtCO2 equivalent (e) could be abated at negative or zero cost. A further 17% of agricultural GHG emissions (7.85 MtCO2e) could be abated at a lower unit cost than the UK Government’s 2022 shadow price of carbon (£34 (tCO2e)-1). The paper discusses a range of methodological hurdles that complicate cost-effectiveness appraisal of abatement in agriculture relative to other sectors.

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Available abstract

This paper addresses the challenge of developing a ‘bottom-up’ marginal abatement cost curve (MACC) for greenhouse gas emissions from UK agriculture. A MACC illustrates the costs of specific crop, soil, and livestock abatement measures against a ‘‘business as usual’’ scenario. The results indicate that in 2022 under a specific policy scenario, around 5.38 MtCO2 equivalent (e) could be abated at negative or zero cost. A further 17% of agricultural GHG emissions (7.85 MtCO2e) could be abated at a lower unit cost than the UK Government’s 2022 shadow price of carbon (£34 (tCO2e)-1). The paper discusses a range of methodological hurdles that complicate cost-effectiveness appraisal of abatement in agriculture relative to other sectors.

Key concepts: Marginal abatement cost, Greenhouse gas, Agriculture, Shadow price, Natural resource economics, Marginal cost, Environmental science, Agricultural economics

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