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Science, Transaction Costs and Carbon Markets


Battaglia, M and Nelson, R, Science, Transaction Costs and Carbon Markets, Carbon Pricing: Early Experiences and Future Prospects, Edward Elgar Publishing, J Quiggin, D Adamson, D Quiggin (ed), Cheltenham, United Kingdom, pp. 136-144. ISBN 978-1-78254-773-0 (2014) [Research Book Chapter]

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Copyright 2014 Edward Elgar

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A price on carbon and the related offset scheme have been created as a first step in transforming Australia towards a low-carbon economy. Whether and to what extent it transforms the agricultural sector into a new era of low-carbon agricultural productivity is an emerging question. Several factors are working against the early adoption of low-carbon technologies and practices by farmers and other land managers. Participation in the Carbon Farming Initiative (CFI) is voluntary, and the transaction costs associated with developing and implementing offset methodologies in many cases are high. In addition the projected prices paid for abated carbon over the short to medium term are relatively low. Consequently, strategic policy has focused on creating incentives to adopt low-carbon technologies. Policies have focused on reducing transaction costs associated with participating in carbon markets and demonstrating the co-benefits from investing in carbon offsets by identifying increases in agricultural productivity and on-farm profitability.

This chapter briefly summarizes the emerging contributions that science is making to help reduce the cost to farmers and other land managers from participating in the carbon market. It briefly reviews the sources of transactions costs, and identifies the different streams of research and development working towards reducing these costs.

Item Details

Item Type:Research Book Chapter
Keywords:carbon price, carbon tax, carbon dioxide, climate change, global warming, greenhouse gas,
Research Division:Environmental Sciences
Research Group:Climate change impacts and adaptation
Research Field:Carbon sequestration science
Objective Division:Energy
Objective Group:Environmentally sustainable energy activities
Objective Field:Environmentally sustainable energy activities not elsewhere classified
UTAS Author:Nelson, R (Associate Professor Rohan Nelson)
ID Code:84706
Year Published:2014
Deposited By:Tasmanian Institute of Agriculture
Deposited On:2013-05-28
Last Modified:2015-03-25

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