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FIRST WORKSHOP ON MITIGATION OF GHG EMISSIONS
                FROM THE SPANISH AGROFORESTRY SECTOR

                             (March 8-9, 2012)


        Evaluation of climate change mitigation
                        policies in agriculture



Mohamed Taher Kahil, Javier Tapia, Fernando Orús, and José Albiac


 Department of Agricultural Economics, Agrifood Research and Technology Center of
                      Aragon (CITA, Government of Aragon)
I. Introduction
 Climate change is an important challenge to human society, with
    environmental, social and economic dimensions.

 In the South of Europe and the Mediterranean basin, there will be
    large negative effects from climate variability, with considerable
    damages in food production (FAO 2011).

   Appropriate climate conditions for cultivation are expected to move
    northwards, resulting in more frequent and severe droughts in the
    Mediterranean area (IPCC 2011).

   A large body of scientific evidence continues to accumulate,
    indicating that climatic change is driven by the increasing
    atmospheric greenhouse gas (GHG) concentrations (IPCC 2007).
 Agriculture is a source of GHG emissions such as methane (CH4) and
  nitrous oxide (N2O), coming from nitrogen fertilization in cultivated soils,
  large animal production facilities, and nitrogen pollution loads in rivers
  and water streams.

   In Spain, GHG emissions from agriculture are close to 39 million t CO2eq
    (11% of emissions) (MARM 2011).

   45% of all agricultural GHG emissions are from soil fertilizer
    management, making it the largest agricultural source.

   32% of emissions are methane from enteric fermentation from livestock.

   21% are nitrous oxide and methane from manure handling and storage.

   LULUCF activities contribute to the improvement of the Spanish GHG
    emission budget. Carbon sequestration amounts to 29 million t CO2eq, or
    8 percent of total emissions.
 Agriculture in Aragon releases almost 3.6

   million t CO2eq of GHG (EACCEL 2011).

 GHG     agricultural   emissions   in   Aragon

   represent 20 percent of the total emissions

   of the region, which is above the national

   percentage (11%).

 Cultivation activities release 1.7 million t CO2eq (46%).

 Manure management release 1.2 million t CO2eq (35%).

 Enteric fermentation from livestock release 0.7 million t CO2eq (19%).

 Forests in Aragon are an important carbon sink, removing 3.4 million t

   CO2eq/year from the atmosphere.
The larger agricultural GHG
emissions     in Aragon are
located in the Bajo Cinca,
Cinca Medio, Cinco Villas,
La   Litera   and   Monegros
counties, because of the
large acreage of intensive
irrigated crops (corn, rice,
peach), and the large swine
and cattle herd in these
areas.
II. Objectives

 Analyze the GHG emission sources linked to agricultural
  production activities in an intensive agricultural area in
  Aragon.

 Evaluate the cost-efficiency of several GHG mitigation
  measures.

 Analyze European agricultural policies at local scale, in order
  to evaluate their contribution to climate change mitigation.
III. Methodology

 The study analyzes cultivation and livestock activities in four
  counties of the Huesca province: Barbastro, Cinca Medio, Hoya de
  Huesca and Monegros. This area includes 138,000 ha of crops
  acreage and more than 2 million heads of swine.

 The assessment of agricultural GHG emissions follows the
  approach of the Intergovernmental Panel on Climate Change (IPCC
  1996).

 A linear programming model has been developed to assess the
  cost-efficiency of several climate change mitigation measures.
IV. Results

1. Assessment of GHG emissions

             GHG emissions and quasi-rent from agricultural production activities
                                         Barbastro   Cinca   Hoya de   Monegros     Total
                                                     Medio   Huesca                 study
                                                                                     area
N2O direct emission (103 t CO2eq)           16        12       20         45          93
N2O indirect emission (103 t CO2eq)         10         7       12         27         56
N2O manure management (103 t CO2eq)         3          8       5          9          25
CH4 manure management (103 t CO2eq)         63        88       45        246        442
CH4 enteric fermentation (103 t CO2eq)      15        32       17         47         111
Total emissions (103 t CO2eq)              107        147      99        374        727
Crop quasi-rent (106 €)                     9          8       5          17         39
Livestock quasi-rent (106 €)                4          6       5          13         28
Total quasi-rent (106 €)                    13        14       10         30         67
Emission intensity (€/t CO2eq)             122        95      100         80         91
2. Policy scenario
                       Social welfare and quasi-rent under each scenario
                                       Welfare    Quasi-rent       Environmental    Crop acreage   Swine herd
                   Scenarios           (106 €)     (106 €)         damage (106 €)      (103 ha)    (103 heads)
Baseline                                 49          67                  18              134          2,050
Emission tax (te=25 €/t CO2eq)           67          49                  18              136          1,940
Emission limit (10%)                     49          65                  16              130          1,769
Water quality control                    48          65                  17              100          2,050
Fertilization standards                  55          71                  16              134          2,050
Nitrogen tax (tn=0.5 €/kg N)             48          58                  17              114          2,050
Nitrogen tax (tn=1 €/kg N)               48          51                  17              111          2,050
Improved feed                            46          64                  18              134          2,050
Swine herd reduction (15%)               48          64                  16              134          1,746
Water tax (tw=0.02 €/m3)                 48          57                  18              119          2,050
Water tax (tw=0.05 €/m3)                 47          43                  18              117          2,050
Reduction of irrigation water (25%)      43          61                  18              118          2,050


                 Water and nitrogen use and pollution loads under each scenario
                                                    Nitrogen           Manure       Nitrogen
                                      Water use    Fertilization       surplus      leaching   GHG emissions
                  Scenarios            (Mm3)          (t N)             (t N)         (t N)     (103 t CO2eq)
Baseline                                567          19,720             7,500         5,900          727
Emission tax (te=25 €/t CO2eq)          569          19,900             7,100         6,000          700
Emission limit (10%)                    549          19,080             6,700         5,700          655
Water quality control                   503          13,140             8,800         3,950          677
Fertilization standards                 567          10,751             2,200         2,700          653
Nitrogen tax (tn=0.5 €/kg N)            505          16,890             9,400         4,700          694
Nitrogen tax (tn=1 €/kg N)              497          16,300             9,600         4,500          690
Improved feed                           567          19,720             4,650         5,900          726
Swine herd reduction (15%)              558          19,720             6,300         5,900          655
Water tax (tw=0.02 €/m3)                506          17,470             7,800         5,200          711
Water tax (tw=0.05 €/m3)                492          16,800             8,100         5,050          706
Reduction of irrigation water (25%)     437          18,240             7,600         5,200          709
3. Abatement costs


                   GHG abatement potential and cost of measures
                                     GHG abatement GHG abatement          Cumulative GHG
              Scenarios             potential (t CO2eq) cost (€/t CO2eq) abatement (t CO2eq)
Fertilization standards                  74,000                -54             74,000
Emission limits (10%)                    72,000                 28            146,000
Water quality control                    50,000                 40            196,000
Swine herd reduction (15%)               72,000                 42            268,000
Nitrogen tax (tn=0.5 €/kg N)             33,000               273             301,000
Reduction of irrigation water (25%)      18,000               333             319,000
Nitrogen tax (tn=1 €/kg N)               37,000               432             356,000
Water tax (tw=0.02 €/m3)                 16,000               625             372,000
Emission tax (te=25 €/t CO2eq)           27,000               667             399,000
Water tax (tw=0.05 €/m  3)               21,000              1,143            420,000
Improved feed                             1,000              3,000            421,000
V. Conclusions
 Agriculture is an important sector for the implementation of climate change
   policies.

 Agriculture is a significant source of GHG emissions and the main source
   of non-CO2 emissions.

 The design of adequate mitigation policies for the agricultural sector is
   needed and requires the cooperation of farmers through the right
   institutional setting.

 The emission intensity in the study area is 91 €/t CO2eq, well above the
   average emission intensity of agriculture in Aragon (339 €/t CO2eq).

 This type of information is important because the spatial dimension of
   emissions contributes to the design and implementation of climate change
   mitigation policies adjusted to local conditions.
 The analysis of the climate change mitigation measures in agriculture
   indicates that there is not a unique preferred measure.

 No single instrument can work to mitigate climate change. A combination of
   adequate regulatory instruments is highly recommended to achieve climate
   stabilization requirements in a cost-efficient way.

 Local characteristics and social acceptability have to be considered in the
   design of measures, because enforcement requires the support of
   stakeholders to be legitimate.

 One important result is the need of considering the entire nitrogen cycle
   and sources when implementing measures to reduce GHG emissions.
   Inappropriate measures could indirectly increase the loss of nitrogen to
   water resources through increased leaching and runoff from crop
   cultivation and manure surplus.
 A comprehensive nutrient management planning is needed to reduce
  emission pollution loads.

 In the case of Aragon, more attention has to be paid to manure
  management in order to find solutions for a better use of this waste.

 Manure management is an important aspect for the implementation of
  the current environmental regulation. This regulation needs some
  revision and adaptation to local conditions.

 Results indicate that the use of economic instruments following the
  “polluter pays” principle is quite inefficient in the abatement of
  agricultural nonpoint pollution.
Workshop ghg mitigation bilbao (mohamed taher kahil)

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Workshop ghg mitigation bilbao (mohamed taher kahil)

  • 1. FIRST WORKSHOP ON MITIGATION OF GHG EMISSIONS FROM THE SPANISH AGROFORESTRY SECTOR (March 8-9, 2012) Evaluation of climate change mitigation policies in agriculture Mohamed Taher Kahil, Javier Tapia, Fernando Orús, and José Albiac Department of Agricultural Economics, Agrifood Research and Technology Center of Aragon (CITA, Government of Aragon)
  • 2. I. Introduction  Climate change is an important challenge to human society, with environmental, social and economic dimensions.  In the South of Europe and the Mediterranean basin, there will be large negative effects from climate variability, with considerable damages in food production (FAO 2011).  Appropriate climate conditions for cultivation are expected to move northwards, resulting in more frequent and severe droughts in the Mediterranean area (IPCC 2011).  A large body of scientific evidence continues to accumulate, indicating that climatic change is driven by the increasing atmospheric greenhouse gas (GHG) concentrations (IPCC 2007).
  • 3.  Agriculture is a source of GHG emissions such as methane (CH4) and nitrous oxide (N2O), coming from nitrogen fertilization in cultivated soils, large animal production facilities, and nitrogen pollution loads in rivers and water streams.  In Spain, GHG emissions from agriculture are close to 39 million t CO2eq (11% of emissions) (MARM 2011).  45% of all agricultural GHG emissions are from soil fertilizer management, making it the largest agricultural source.  32% of emissions are methane from enteric fermentation from livestock.  21% are nitrous oxide and methane from manure handling and storage.  LULUCF activities contribute to the improvement of the Spanish GHG emission budget. Carbon sequestration amounts to 29 million t CO2eq, or 8 percent of total emissions.
  • 4.  Agriculture in Aragon releases almost 3.6 million t CO2eq of GHG (EACCEL 2011).  GHG agricultural emissions in Aragon represent 20 percent of the total emissions of the region, which is above the national percentage (11%).  Cultivation activities release 1.7 million t CO2eq (46%).  Manure management release 1.2 million t CO2eq (35%).  Enteric fermentation from livestock release 0.7 million t CO2eq (19%).  Forests in Aragon are an important carbon sink, removing 3.4 million t CO2eq/year from the atmosphere.
  • 5. The larger agricultural GHG emissions in Aragon are located in the Bajo Cinca, Cinca Medio, Cinco Villas, La Litera and Monegros counties, because of the large acreage of intensive irrigated crops (corn, rice, peach), and the large swine and cattle herd in these areas.
  • 6. II. Objectives  Analyze the GHG emission sources linked to agricultural production activities in an intensive agricultural area in Aragon.  Evaluate the cost-efficiency of several GHG mitigation measures.  Analyze European agricultural policies at local scale, in order to evaluate their contribution to climate change mitigation.
  • 7. III. Methodology  The study analyzes cultivation and livestock activities in four counties of the Huesca province: Barbastro, Cinca Medio, Hoya de Huesca and Monegros. This area includes 138,000 ha of crops acreage and more than 2 million heads of swine.  The assessment of agricultural GHG emissions follows the approach of the Intergovernmental Panel on Climate Change (IPCC 1996).  A linear programming model has been developed to assess the cost-efficiency of several climate change mitigation measures.
  • 8. IV. Results 1. Assessment of GHG emissions GHG emissions and quasi-rent from agricultural production activities Barbastro Cinca Hoya de Monegros Total Medio Huesca study area N2O direct emission (103 t CO2eq) 16 12 20 45 93 N2O indirect emission (103 t CO2eq) 10 7 12 27 56 N2O manure management (103 t CO2eq) 3 8 5 9 25 CH4 manure management (103 t CO2eq) 63 88 45 246 442 CH4 enteric fermentation (103 t CO2eq) 15 32 17 47 111 Total emissions (103 t CO2eq) 107 147 99 374 727 Crop quasi-rent (106 €) 9 8 5 17 39 Livestock quasi-rent (106 €) 4 6 5 13 28 Total quasi-rent (106 €) 13 14 10 30 67 Emission intensity (€/t CO2eq) 122 95 100 80 91
  • 9. 2. Policy scenario Social welfare and quasi-rent under each scenario Welfare Quasi-rent Environmental Crop acreage Swine herd Scenarios (106 €) (106 €) damage (106 €) (103 ha) (103 heads) Baseline 49 67 18 134 2,050 Emission tax (te=25 €/t CO2eq) 67 49 18 136 1,940 Emission limit (10%) 49 65 16 130 1,769 Water quality control 48 65 17 100 2,050 Fertilization standards 55 71 16 134 2,050 Nitrogen tax (tn=0.5 €/kg N) 48 58 17 114 2,050 Nitrogen tax (tn=1 €/kg N) 48 51 17 111 2,050 Improved feed 46 64 18 134 2,050 Swine herd reduction (15%) 48 64 16 134 1,746 Water tax (tw=0.02 €/m3) 48 57 18 119 2,050 Water tax (tw=0.05 €/m3) 47 43 18 117 2,050 Reduction of irrigation water (25%) 43 61 18 118 2,050 Water and nitrogen use and pollution loads under each scenario Nitrogen Manure Nitrogen Water use Fertilization surplus leaching GHG emissions Scenarios (Mm3) (t N) (t N) (t N) (103 t CO2eq) Baseline 567 19,720 7,500 5,900 727 Emission tax (te=25 €/t CO2eq) 569 19,900 7,100 6,000 700 Emission limit (10%) 549 19,080 6,700 5,700 655 Water quality control 503 13,140 8,800 3,950 677 Fertilization standards 567 10,751 2,200 2,700 653 Nitrogen tax (tn=0.5 €/kg N) 505 16,890 9,400 4,700 694 Nitrogen tax (tn=1 €/kg N) 497 16,300 9,600 4,500 690 Improved feed 567 19,720 4,650 5,900 726 Swine herd reduction (15%) 558 19,720 6,300 5,900 655 Water tax (tw=0.02 €/m3) 506 17,470 7,800 5,200 711 Water tax (tw=0.05 €/m3) 492 16,800 8,100 5,050 706 Reduction of irrigation water (25%) 437 18,240 7,600 5,200 709
  • 10. 3. Abatement costs GHG abatement potential and cost of measures GHG abatement GHG abatement Cumulative GHG Scenarios potential (t CO2eq) cost (€/t CO2eq) abatement (t CO2eq) Fertilization standards 74,000 -54 74,000 Emission limits (10%) 72,000 28 146,000 Water quality control 50,000 40 196,000 Swine herd reduction (15%) 72,000 42 268,000 Nitrogen tax (tn=0.5 €/kg N) 33,000 273 301,000 Reduction of irrigation water (25%) 18,000 333 319,000 Nitrogen tax (tn=1 €/kg N) 37,000 432 356,000 Water tax (tw=0.02 €/m3) 16,000 625 372,000 Emission tax (te=25 €/t CO2eq) 27,000 667 399,000 Water tax (tw=0.05 €/m 3) 21,000 1,143 420,000 Improved feed 1,000 3,000 421,000
  • 11. V. Conclusions  Agriculture is an important sector for the implementation of climate change policies.  Agriculture is a significant source of GHG emissions and the main source of non-CO2 emissions.  The design of adequate mitigation policies for the agricultural sector is needed and requires the cooperation of farmers through the right institutional setting.  The emission intensity in the study area is 91 €/t CO2eq, well above the average emission intensity of agriculture in Aragon (339 €/t CO2eq).  This type of information is important because the spatial dimension of emissions contributes to the design and implementation of climate change mitigation policies adjusted to local conditions.
  • 12.  The analysis of the climate change mitigation measures in agriculture indicates that there is not a unique preferred measure.  No single instrument can work to mitigate climate change. A combination of adequate regulatory instruments is highly recommended to achieve climate stabilization requirements in a cost-efficient way.  Local characteristics and social acceptability have to be considered in the design of measures, because enforcement requires the support of stakeholders to be legitimate.  One important result is the need of considering the entire nitrogen cycle and sources when implementing measures to reduce GHG emissions. Inappropriate measures could indirectly increase the loss of nitrogen to water resources through increased leaching and runoff from crop cultivation and manure surplus.
  • 13.  A comprehensive nutrient management planning is needed to reduce emission pollution loads.  In the case of Aragon, more attention has to be paid to manure management in order to find solutions for a better use of this waste.  Manure management is an important aspect for the implementation of the current environmental regulation. This regulation needs some revision and adaptation to local conditions.  Results indicate that the use of economic instruments following the “polluter pays” principle is quite inefficient in the abatement of agricultural nonpoint pollution.