2014Base Institutionnelle de Recherche de l'université Paris-Dauphine (BIRD) (University Paris-Dauphine)Open access

Greenhouse gas mitigation in Chinese agriculture: Distinguishing technical and economic potentials

Christian de Perthuis, Dominic Moran, Erda Lin, Guodong Han, Liping Guo, Xiaotang Ju, Eli Sætnan, Pete Smith, Dali Nayak, Frank Koslowski, Wen Wang

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Abstract

China is now the world's biggest annual emitter of greenhouse gases with 7467 million tons (Mt) carbon dioxide equivalent (CO2e) in 2005, with agriculture accounting for 11% of this total. As elsewhere, agricultural emissions mitigation policy in China faces a range of challenges due to the biophysical complexity and heterogeneity of farming systems, as well as other socioeconomic barriers. Existing research has contributed to improving our understanding of the technical potential of mitigation measures in this sector (i.e. what works). But for policy purposes it is important to convert these measures into a feasible economic potential, which provides a perspective on whether agricultural emissions reduction (measures) are low cost relative to mitigation measures and overall potential offered by other sectors of the economy. We develop a bottom-up marginal abatement cost curve (MACC) representing the cost of mitigation measures applicable in addition to business-as-usual agricultural practices. The MACC results demonstrate that while the sector offers a maximum technical potential of 402 MtCO2e in 2020, a reduction of 135 MtCO2e is potentially available at zero or negative cost (i.e. a cost saving), and 176 MtCO2e (approximately 44% of the total) can be abated at a cost below a threshold carbon price ≤¥ 100 (approximately €12) per tCO2e. Our findings highlight the relative cost effectiveness of nitrogen fertilizer and manure best management practices, and animal breeding practices. We outline the assumptions underlying MACC construction and discuss some scientific, socioeconomic and institutional barriers to realizing the indicated levels of mitigation.

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China is now the world's biggest annual emitter of greenhouse gases with 7467 million tons (Mt) carbon dioxide equivalent (CO2e) in 2005, with agriculture accounting for 11% of this total. As elsewhere, agricultural emissions mitigation policy in China faces a range of challenges due to the biophysical complexity and heterogeneity of farming systems, as well as other socioeconomic barriers. Existing research has contributed to improving our understanding of the technical potential of mitigation measures in this sector (i.e. what works). But for policy purposes it is important to convert these measures into a feasible economic potential, which provides a perspective on whether agricultural emissions reduction (measures) are low cost relative to mitigation measures and overall potential offered by other sectors of the economy. We develop a bottom-up marginal abatement cost curve (MACC) representing the cost of mitigation measures applicable in addition to business-as-usual agricultural practices. The MACC results demonstrate that while the sector offers a maximum technical potential of 402 MtCO2e in 2020, a reduction of 135 MtCO2e is potentially available at zero or negative cost (i.e. a cost saving), and 176 MtCO2e (approximately 44% of the total) can be abated at a cost below a threshold carbon price ≤¥ 100 (approximately €12) per tCO2e. Our findings highlight the relative cost effectiveness of nitrogen fertilizer and manure best management practices, and animal breeding practices. We outline the assumptions underlying MACC construction and discuss some scientific, socioeconomic and institutional barriers to realizing the indicated levels of mitigation.

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Available abstract

China is now the world's biggest annual emitter of greenhouse gases with 7467 million tons (Mt) carbon dioxide equivalent (CO2e) in 2005, with agriculture accounting for 11% of this total. As elsewhere, agricultural emissions mitigation policy in China faces a range of challenges due to the biophysical complexity and heterogeneity of farming systems, as well as other socioeconomic barriers. Existing research has contributed to improving our understanding of the technical potential of mitigation measures in this sector (i.e. what works). But for policy purposes it is important to convert these measures into a feasible economic potential, which provides a perspective on whether agricultural emissions reduction (measures) are low cost relative to mitigation measures and overall potential offered by other sectors of the economy. We develop a bottom-up marginal abatement cost curve (MACC) representing the cost of mitigation measures applicable in addition to business-as-usual agricultural practices. The MACC results demonstrate that while the sector offers a maximum technical potential of 402 MtCO2e in 2020, a reduction of 135 MtCO2e is potentially available at zero or negative cost (i.e. a cost saving), and 176 MtCO2e (approximately 44% of the total) can be abated at a cost below a threshold carbon price ≤¥ 100 (approximately €12) per tCO2e. Our findings highlight the relative cost effectiveness of nitrogen fertilizer and manure best management practices, and animal breeding practices. We outline the assumptions underlying MACC construction and discuss some scientific, socioeconomic and institutional barriers to realizing the indicated levels of mitigation.

Key concepts: Marginal abatement cost, Greenhouse gas, Agriculture, Natural resource economics, Manure, Climate change mitigation, China, Agricultural economics

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