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How Potential Carbon Policies Could Affect Where and How Cotton Is Produced in the United States

Published online by Cambridge University Press:  15 September 2016

Lanier Nalley
Affiliation:
Department of Agricultural Economics and Agribusiness at University of Arkansas
Michael Popp
Affiliation:
Department of Agricultural Economics and Agribusiness at University of Arkansas
Zara Niederman
Affiliation:
Department of Agricultural Economics and Agribusiness at University of Arkansas
Kristofor Brye
Affiliation:
Department of Crop, Soil, and Environmental Sciences at University of Arkansas
Marty Matlock
Affiliation:
Department of Biological and Agricultural Engineering at University of Arkansas
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Abstract

Using life cycle assessment methodology, this analysis evaluates how two carbon reduction strategies affect cotton plantings regionally and methods used to produce cotton. Because cotton production emits large amounts of carbon, the design of a reduction policy as either excluding soil sequestration through cap-and-trade or including it through carbon offset is likely to affect the success of the policy. A cap-and-trade program that ignores the amount of carbon cotton would sequester in the soil during its life cycle could increase net emissions by rewarding producers whose crops emit limited carbon directly but also sequester little carbon in the ground.

Type
Research Article
Copyright
Copyright © 2012 Northeastern Agricultural and Resource Economics Association 

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