Impacts of unilateral U.S. carbon policies on agricultural sector greenhouse gas emissions and commodity markets
This article analyzes the consequences of the United States implementing unilateral policies to reduce greenhouse gas (GHG) emissions from agriculture. The policy representation is based loosely on current and past policy initiatives that have subsidized GHG reductions and considered special treatme...
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| Format: | Article |
| Language: | English |
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IOP Publishing
2025-01-01
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| Series: | Environmental Research Letters |
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| Online Access: | https://doi.org/10.1088/1748-9326/ada2ac |
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| author | Marcel Adenauer Michael K Adjemian Shawn Arita Wade Brorsen Joseph Cooper Gyuhyeong Goh Berna Karali Mindy Lyn Mallory Wyatt Thompson Jisang Yu |
| author_facet | Marcel Adenauer Michael K Adjemian Shawn Arita Wade Brorsen Joseph Cooper Gyuhyeong Goh Berna Karali Mindy Lyn Mallory Wyatt Thompson Jisang Yu |
| author_sort | Marcel Adenauer |
| collection | DOAJ |
| description | This article analyzes the consequences of the United States implementing unilateral policies to reduce greenhouse gas (GHG) emissions from agriculture. The policy representation is based loosely on current and past policy initiatives that have subsidized GHG reductions and considered special treatment for sectors heavily involved in trade. To do so, our first step is to generate new estimates of key parameters, elasticities of demand and supply, that are critical to understanding interactions among agricultural commodities, such as between livestock and crop products, in this area of research and more broadly. We apply these parameters in a widely used economic model that estimates the effects of a unilateral U.S. agricultural GHG policy on both domestic and foreign markets as well as global GHG emissions. Livestock effects dominate, driving most U.S. livestock product consumer prices higher and causing mixed crop and crop product price effects. A unilateral policy increases food costs in the implementing country and, if applied to all supplies, domestic and imported, tends to raise prices elsewhere as well. Alternative implementation strategies, such as not imposing the costs on exports or not imposing the costs on imports, can lead to lower food prices and greater consumption in other countries, as well as have important implications for the overall GHG reductions achieved by the unilateral effort. |
| format | Article |
| id | doaj-art-334b4d40b53649e9b0fa5840266547c0 |
| institution | Kabale University |
| issn | 1748-9326 |
| language | English |
| publishDate | 2025-01-01 |
| publisher | IOP Publishing |
| record_format | Article |
| series | Environmental Research Letters |
| spelling | doaj-art-334b4d40b53649e9b0fa5840266547c02025-01-24T17:21:06ZengIOP PublishingEnvironmental Research Letters1748-93262025-01-0120202402210.1088/1748-9326/ada2acImpacts of unilateral U.S. carbon policies on agricultural sector greenhouse gas emissions and commodity marketsMarcel Adenauer0Michael K Adjemian1Shawn Arita2Wade Brorsen3Joseph Cooper4Gyuhyeong Goh5Berna Karali6Mindy Lyn Mallory7Wyatt Thompson8Jisang Yu9Organization for Economic Cooperation and Development , Paris, FranceUniversity of Georgia , Athens, GA, United States of AmericaOffice of the Chief Economist, U.S. Department of Agriculture , Washington, DC, United States of AmericaOklahoma State University , Stillwater, OK, United States of AmericaOffice of the Chief Economist, U.S. Department of Agriculture , Washington, DC, United States of AmericaKyungpook National University , Daegu, Republic of KoreaUniversity of Georgia , Athens, GA, United States of AmericaPurdue University , West Lafayette, IN, United States of AmericaUniversity of Missouri , Columbia, MO, United States of AmericaKansas State University , Manhattan, KS, United States of AmericaThis article analyzes the consequences of the United States implementing unilateral policies to reduce greenhouse gas (GHG) emissions from agriculture. The policy representation is based loosely on current and past policy initiatives that have subsidized GHG reductions and considered special treatment for sectors heavily involved in trade. To do so, our first step is to generate new estimates of key parameters, elasticities of demand and supply, that are critical to understanding interactions among agricultural commodities, such as between livestock and crop products, in this area of research and more broadly. We apply these parameters in a widely used economic model that estimates the effects of a unilateral U.S. agricultural GHG policy on both domestic and foreign markets as well as global GHG emissions. Livestock effects dominate, driving most U.S. livestock product consumer prices higher and causing mixed crop and crop product price effects. A unilateral policy increases food costs in the implementing country and, if applied to all supplies, domestic and imported, tends to raise prices elsewhere as well. Alternative implementation strategies, such as not imposing the costs on exports or not imposing the costs on imports, can lead to lower food prices and greater consumption in other countries, as well as have important implications for the overall GHG reductions achieved by the unilateral effort.https://doi.org/10.1088/1748-9326/ada2acagricultural emissionsborder adjustmentsclimate policyelasticitiesgreenhouse gasagricultural trade |
| spellingShingle | Marcel Adenauer Michael K Adjemian Shawn Arita Wade Brorsen Joseph Cooper Gyuhyeong Goh Berna Karali Mindy Lyn Mallory Wyatt Thompson Jisang Yu Impacts of unilateral U.S. carbon policies on agricultural sector greenhouse gas emissions and commodity markets Environmental Research Letters agricultural emissions border adjustments climate policy elasticities greenhouse gas agricultural trade |
| title | Impacts of unilateral U.S. carbon policies on agricultural sector greenhouse gas emissions and commodity markets |
| title_full | Impacts of unilateral U.S. carbon policies on agricultural sector greenhouse gas emissions and commodity markets |
| title_fullStr | Impacts of unilateral U.S. carbon policies on agricultural sector greenhouse gas emissions and commodity markets |
| title_full_unstemmed | Impacts of unilateral U.S. carbon policies on agricultural sector greenhouse gas emissions and commodity markets |
| title_short | Impacts of unilateral U.S. carbon policies on agricultural sector greenhouse gas emissions and commodity markets |
| title_sort | impacts of unilateral u s carbon policies on agricultural sector greenhouse gas emissions and commodity markets |
| topic | agricultural emissions border adjustments climate policy elasticities greenhouse gas agricultural trade |
| url | https://doi.org/10.1088/1748-9326/ada2ac |
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