Net farm income and land use under a U.S. Greenhouse Gas Cap and Trade
During recent years, the U.S. agricultural sector has experienced
high prices for energy-related inputs and commodities,
and a rapidly developing bioenergy market.
Greenhouse gas (GHG) emissions mitigation would further
alter agricultural markets and increase land competition in
forestry and agriculture by shifting input costs, creating an
agricultural GHG abatement market, and expanding bioenergy
demand. The potential effects of these events on the
agricultural sector are being hotly debated. We use a multisector
model (FASOM-GHG, Adams et al, 2009) to estimate
the potential implications of these developments on
net farm income and the U.S. agricultural sector.