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  Options to overcome the barriers to pricing European agricultural emissions

Grosjean, G., Fuss, S., Koch, N., Bodirsky, B. L., De Cara, S., Acworth, W. (2018): Options to overcome the barriers to pricing European agricultural emissions. - Climate Policy, 18, 2, 151-169.
https://doi.org/10.1080/14693062.2016.1258630

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 Creators:
Grosjean, Godefroy1, Author              
Fuss, S.2, Author
Koch, N.2, Author
Bodirsky, Benjamin Leon1, Author              
De Cara, S.2, Author
Acworth, W.2, Author
Affiliations:
1Potsdam Institute for Climate Impact Research, ou_persistent13              
2External Organizations, ou_persistent22              

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 Abstract: Although agriculture could contribute substantially to European emission reductions, its mitigation potential lies untapped and dormant. Market-based instruments could be pivotal in incentivizing cost-effective abatement. However, sector specificities in transaction costs, leakage risks and distributional impacts impede its implementation. The significance of such barriers critically hinges on the dimensions of policy design. This article synthesizes the work on emissions pricing in agriculture together with the literature on the design of market-based instruments. To structure the discussion, an options space is suggested to map policy options, focusing on three key dimensions of policy design. More specifically, it examines the role of policy coverage, instruments and transfers to farmers in overcoming the barriers. First, the results show that a significant proportion of agricultural emissions and mitigation potential could be covered by a policy targeting large farms and few emission sources, thereby reducing transaction costs. Second, whether an instrument is voluntary or mandatory influences distributional outcomes and leakage. Voluntary instruments can mitigate distributional concerns and leakage risks but can lead to subsidy lock-in and carbon price distortion. Third, the impact on transfers resulting from the interaction of the Common Agricultural Policy (CAP) with emissions pricing will play a key role in shaping political feasibility and has so far been underappreciated.

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 Dates: 2018
 Publication Status: Finally published
 Pages: -
 Publishing info: -
 Table of Contents: -
 Rev. Type: Peer
 Identifiers: DOI: 10.1080/14693062.2016.1258630
PIKDOMAIN: Climate Impacts & Vulnerabilities - Research Domain II
PIKDOMAIN: Sustainable Solutions - Research Domain III
eDoc: 7431
Research topic keyword: Food & Agriculture
Research topic keyword: Economics
Research topic keyword: Carbon Pricing
Research topic keyword: Land use
Research topic keyword: Policy Advice
Model / method: Qualitative Methods
Organisational keyword: RD2 - Climate Resilience
Organisational keyword: RD3 - Transformation Pathways
Working Group: Land Use and Resilience
Working Group: Macroeconomic modeling of climate change mitigation and impacts
 Degree: -

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Title: Climate Policy
Source Genre: Journal, SCI, Scopus
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Publ. Info: -
Pages: - Volume / Issue: 18 (2) Sequence Number: - Start / End Page: 151 - 169 Identifier: Other: Taylor & Francis
Other: 1752-7457
ISSN: 1469-3062
CoNE: https://publications.pik-potsdam.de/cone/journals/resource/climate-policy