Publication - Dynamic Economic Modeling of Soil Carbon
Title in English
Dynamic Economic Modeling of Soil Carbon
Summary in English
Agriculture and Agri-Food Canada (AAFC) has ongoing research projects to provide information on the effect of potential agricultural policy and technology scenarios on the environment and the economic conditions, behaviour and performance in the agriculture sector. Included in this work program is the economic evaluation of scenarios for the mitigation of greenhouse gas (GHG) emissions in the agriculture sector. Agricultural 'carbon sequestration' practises comprise one such mitigation scenario. This report analyses and models the potential decision-making process of farmers when they are presented with the opportunity to enter into carbon sequestration contracts. The focus of the report is on the complex dynamic factors and uncertainties involved in deciding whether and when to enter into such contracts. The report uses dynamic optimization methods to simulate potential solutions to the decision-making problem.