The social costs of second-best policies: Evidence from agricultural GHG mitigation

Garnache, C.; Mérel, P.; Lee, Juhwan; Six, J.

doi:10.1016/j.jeem.2016.10.004

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Authors

Garnache, C.

Mérel, P.

Lee, Juhwan

Six, J.

Date

2017

Type

Journal Article

Metadata

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Citation

Garnache, C. and Mérel, P.R. and Lee, J. and Six, J. 2017. The social costs of second-best policies: Evidence from agricultural GHG mitigation. Journal of Environmental Economics and Management. 82: pp. 39-73.

Source Title

Journal of Environmental Economics and Management

DOI

10.1016/j.jeem.2016.10.004

ISSN

0095-0696

Faculty

Faculty of Science and Engineering

School

School of Molecular and Life Sciences (MLS)

URI

http://hdl.handle.net/20.500.11937/75590

Collection

Curtin Research Publications

Abstract

© 2016 Elsevier Inc. This paper investigates the social costs of second-best agricultural greenhouse gas (GHG) mitigation policies. Adjustments along the land use and input intensity margins are represented within a regionalized optimization model of California crop production calibrated to economic and agronomic information. Second-best policies relying on spatially aggregated GHG emission factors lead to small abatement efficiency losses, while policies targeting a single GHG lead to moderate losses. In contrast, policies targeting a single input entail large abatement efficiency losses, which nonetheless can be reduced by combining instruments.