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Global Climate Change: Economics of Markets for Agricultural Greenhouse Gases

Contents
 

We are not currently accepting proposals, but may do so in the future.

USDA's Economic Research Service in May 2010 announced a request for economic research proposals related to U.S. agricultural participation in proposed greenhouse gas markets. The deadline for submitting proposals for fiscal 2010 has passed. Supported research in the program, entitled "Economics of Markets for Agricultural Greenhouse Gases (EMAGG)" targets at least one of three broad areas:

(1) Estimates of supply curves of greenhouse gas reductions from U.S. agricultural practices. Such estimates should help government agencies predict the costs and quantities of agricultural greenhouse gas reductions that might be provided to a carbon market by the adoption of specific agricultural practices, including new agricultural activities and land uses tied to crop or livestock agriculture, such as afforestation of agricultural land.

(2) The integrity of agricultural greenhouse gas reductions procured through markets, including provisions designed to enhance this integrity. Research should help the Government understand the nature and magnitude of the problems of additionality, leakage, uncertainty, reversals, and stacking. It may also aim to improve our understanding of provisions that might be used to address these concerns.

(3) The role of non-neoclassical behavior in the provision of agricultural greenhouse gas reductions through markets. Research should help the Government predict how agricultural participation in a carbon market might be affected by non-neoclassical behavior such as hyperbolic discounting and framing effects. Research may help to identify policy provisions that either minimize or build on these behaviors to enhance integrity or reduce the costs of agricultural greenhouse gas reductions procured through markets. This topic area may include research that conducts experiments designed to identify behavior affecting agricultural participation in carbon markets.

Funded Projects

In fiscal 2010, the EMAGG program awarded $735,000 to 7 projects to examine the economics of agricultural activities and practices and the effects of programs and greenhouse gas markets in reducing agricultural greenhouse gases. View the detailed list of funded projects.

Complete details of the program and application process can be found in the document, Economics of Markets for Agricultural Greenhouse Gases, Fiscal 2010: Competitive Grants and Cooperative Agreements Program—Description and Application Process.

 

For more information, contact: Daniel Hellerstein, John Horowitz, and Craig Osteen

Web administration: webadmin@ers.usda.gov

Updated date: April 26, 2011