Cost-Effective Mitigation of Greenhouse Gas Emissions in Agriculture

Abstract

Climate change from anthropogenic activities represents a serious threat to life in earth. Agriculture releases significant emissions of greenhouse gases (GHG), but also offers low-cost opportunities to mitigate GHG emissions. This paper assesses agricultural GHG emissions in Aragon, one important and representative region for agriculture in Spain. The Marginal Abatement Cost Curve (MACC) approach is used to analyze the abatement potential and cost-efficiency of mitigation measures under several scenarios, with and without taking into account the interaction among measures and their transaction costs. The assessment identifies the environmental and economic outcomes of different combinations of measures. Moreover, we develop future mitigation scenarios for agriculture toward the year 2050, in order to assess the impacts on GHG emissions. Results highlight the importance of assessing biophysical processes in mitigation measures, and the significant effects of interactions between measures that reduce the abatement potential and worsen the cost-efficiency. The inclusion of transaction costs provides a better ranking of measures and a more accurate estimation of implementation costs. The scenario analysis shows how the combinations of measures could reduce emissions and promote sustainable agriculture in the future. Keywords: Climate change; mitigation measures; biophysical processes; cost-efficiency; abatement costs; transaction costs; policy scenarios.