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Sectoral crediting mechanisms such as sectoral no-lose targets have been proposed as a way to provide incentives for emission reductions in developing countries as part of an international climate agreement, and scale up carbon trading from the project-level Clean Development Mechanism to the sectoral level.

Countries would generate tradable emission credits (offsets) for reducing emissions in a sector below an agreed crediting baseline. However, large uncertainties in the regulator's predictions of the counterfactual business-as-usual baseline are likely to render sectoral no-lose targets an extremely unattractive mechanism in practice, at least for the transportation case study presented here. Given these uncertainties, the regulator faces a tradeoff between efficiency (setting generous crediting baselines to encourage more countries to opt in) and limiting transfer payments for non-additional offsets (which are generated if the crediting baseline is set above business-as-usual).

The first-best outcome is attainable through setting a generous crediting baseline. However, this comes at the cost of either increased environmental damage (if developed country targets are not adjusted to account for non-additional offsets), or transfers from developed to developing countries that are likely to be too high to be politically feasible (if developed country targets are made more stringent in recognition that many offsets are nonadditional). A more stringent crediting baseline still generates a large proportion of non-additional offsets, but renders sectoral no-lose targets virtually irrelevant as few countries opt in.

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A new issue brief by Scott Rozelle and fellow researchers Jinxia Wang and Jikun Huang concludes that climate change will have a significant effect on China's crop yields and impact its economy, including the grain trade. It concludes that China's government is responsible for responding in ways that will help the country adapt to and mitigate the effects of climate change. The issue brief was jointly published by the International Centre for Trade and Sustainable Development and the International Food and Agricultural Trade Policy Council.

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Michael joined PESD in July of 2010 after graduating from Stanford with a BA in Economics. He works with the Program Director, Frank A. Wolak, as a Quantitative Research Assistant. At Stanford he discovered his interest in Economics as a tool for encouraging more responsible use of energy and resources. He looks forward to working at PESD where he will continue to explore these interests.

His research interests include studying the effects of price-based climate policies, and to what extent they accelerate the production and adoption of low-carbon energy technologies.

Providing food security for a world that will be warmer, more populous, and continually developing requires the implementation of sound policies that enhance food and agricultural consumption, production, incomes, and trade. FSE is in the midst of hosting a two-year, 12-lecture symposium series on Global Food Policy and Food Security.

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Gang He's work focuses on China's energy and climate change policy, carbon capture and sequestration, domestic coal and power sectors and their key role in both the global coal market and in international climate policy framework.  He also studies other issues related to energy economics and modeling, global climate change and the development of lower-carbon energy sources. 

Prior to joining PESD, he was with the World Resources Institute as a Cynthia Helms Fellow.  He has also worked for the Global Roundtable on Climate Change of the Earth Institute at Columbia University. With his experiences both in US and China, he has been actively involved in the US-China collaboration on energy and climate change. 

Mr. He received an M.A. from Columbia University on Climate and Society, B.S. from Peking University on Geography, and he is currently doing a PhD in the Energy and Resources Group at UC Berkeley.

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FSE director Roz Naylor discusses the stresses that climate change and a greater world population will have on our food supply in an interview with Smithsonian Magazine. An economist by training, Rosamond L. Naylor studies the world food economy and sustainable agriculture. Though she says she is deeply worried about climate change and population growth, she described herself as "optimistic" in a conversation with Smithsonian's Amanda Bensen.
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As efforts to mitigate climate change increase, there is a need to identify cost-effective ways to avoid emissions of greenhouse gases (GHGs). Agriculture is rightly recognized as a source of considerable emissions, with concomitant opportunities for mitigation. Although future agricultural productivity is critical, as it will shape emissions from conversion of native landscapes to food and biofuel crops, investment in agricultural research is rarely mentioned as a mitigation strategy. Here we estimate the net effect on GHG emissions of historical agricultural intensification between 1961 and 2005. We find that while emissions from factors such as fertilizer production and application have increased, the net effect of higher yields has avoided emissions of up to 161 gigatons of carbon (GtC) (590 GtCO2e) since 1961. We estimate that each dollar invested in agricultural yields has resulted in 68 fewer kgC (249 kgCO2e) emissions relative to 1961 technology ($14.74/tC, or ~$4/tCO2e), avoiding 3.6 GtC (13.1 GtCO2e) per year. Our analysis indicates that investment in yield improvements compares favorably with other commonly proposed mitigation strategies. Further yield improvements should therefore be prominent among efforts to reduce future GHG emissions.

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David Lobell
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Advances in high-yield agriculture achieved during the so-called Green Revolution have not only helped feed the planet, but also have helped slow the pace of global warming by cutting the amount of biomass burned - and the resulting greenhouse gas emissions - when forests or grasslands are cleared for farming. Stanford researchers estimate those emissions have been trimmed by over half a trillion tons of carbon dioxide. The paper is being released this week in the Proceedings of the National Academy of Sciences.

Advances in high-yield agriculture over the latter part of the 20th century have prevented massive amounts of greenhouse gases from entering the atmosphere - the equivalent of 590 billion metric tons of carbon dioxide - according to a new study led by two Stanford Earth scientists.

The yield improvements reduced the need to convert forests to farmland, a process that typically involves burning of trees and other plants, which generates carbon dioxide and other greenhouse gases.

The researchers estimate that if not for increased yields, additional greenhouse gas emissions from clearing land for farming would have been equal to as much as a third of the world's total output of greenhouse gases since the dawn of the Industrial Revolution in 1850.

The researchers also calculated that for every dollar spent on agricultural research and development since 1961, emissions of the three principal greenhouse gases - methane, nitrous oxide and carbon dioxide - were reduced by the equivalent of about a quarter of a ton of carbon dioxide - a high rate of financial return compared to other approaches to reducing the gases.

"Our results dispel the notion that modern intensive agriculture is inherently worse for the environment than a more 'old-fashioned' way of doing things," said Jennifer Burney, lead author of a paper describing the study that will be published online by the Proceedings of the National Academy of Sciences.

Adding up the impact

The researchers calculated emissions of carbon dioxide, methane and nitrous oxide, converting the amounts of the latter two gases into the quantities of carbon dioxide that would have an equivalent impact on the atmosphere, to facilitate comparison of total greenhouse gas outputs.

Burney, a postdoctoral researcher with the Program on Food Security and the Environment at Stanford, said agriculture currently accounts for about 12 percent of human-caused greenhouse gas emissions. Although greenhouse gas emissions from the production and use of fertilizer have increased with agricultural intensification, those emissions are far outstripped by the emissions that would have been generated in converting additional forest and grassland to farmland.

"Every time forest or shrub land is cleared for farming, the carbon that was tied up in the biomass is released and rapidly makes its way into the atmosphere - usually by being burned," she said. "Yield intensification has lessened the pressure to clear land and reduced emissions by up to 13 billion tons of carbon dioxide a year."

"When we look at the costs of the research and development that went into these improvements, we find that funding agricultural research ranks among the cheapest ways to prevent greenhouse gas emissions," said Steven Davis, a co-author of the paper and a postdoctoral researcher at the Carnegie Institution at Stanford.

To evaluate the impact of yield intensification on climate change, the researchers compared actual agricultural production between 1961 and 2005 with hypothetical scenarios in which the world's increasing food needs were met by expanding the amount of farmland rather than by the boost in yields produced by the Green Revolution.

"Even without higher yields, population and food demand would likely have climbed to levels close to what they are today," said David Lobell, also a coauthor and assistant professor of environmental Earth system science at Stanford.

"Lower yields per acre would likely have meant more starvation and death, but the population would still have increased because of much higher birth rates," he said. "People tend to have more children when survival of those children is less certain."

Avoiding the need for more farmland

The researchers found that without the advances in high-yield agriculture, several billion additional acres of cropland would have been needed.

Comparing emissions in the theoretical scenarios with real-world emissions from 1961 to 2005, the researchers estimated that the actual improvements in crop yields probably kept greenhouse gas emissions equivalent to at least 317 billion tons of carbon dioxide out of the atmosphere, and perhaps as much as 590 billion tons.

Without the emission reductions from yield improvements, the total amount of greenhouse gas pumped into the atmosphere over the preceding 155 years would have been between 18 and 34 percent greater than it has been, they said.

To calculate how much money was spent on research for each ton of avoided emissions, the researchers calculated the total amount of agricultural research funding related to yield improvements since 1961 through 2005. That produced a price between approximately $4 and $7.50 for each ton of carbon dioxide that was not emitted.

"The size and cost-effectiveness of this carbon reduction is striking when compared with proposed mitigation options in other sectors," said Lobell. "For example, strategies proposed to reduce emissions related to construction would cut emissions by a little less than half the amount that we estimate has been achieved by yield improvements and would cost close to $20 per ton."

The authors also note that raising yields alone won't guarantee lower emissions from land use change.

"It has been shown in several contexts that yield gains alone do not necessarily stop expansion of cropland," Lobell said. "That suggests that intensification must be coupled with conservation and development efforts.

"In certain cases, when yields go up in an area, it increases the profitability of farming there and gives people more incentive to expand their farm. But in general, high yields keep prices low, which reduces the incentive to expand."

The researchers concluded that improvement of crop yields should be prominent among a portfolio of strategies to reduce global greenhouse gases emissions.

"The striking thing is that all of these climate benefits were not the explicit intention of historical investments in agriculture. This was simply a side benefit of efforts to feed the world," Burney noted. "If climate policy intentionally rewarded these kinds of efforts, that could make an even bigger difference. The question going forward is how climate policy might be designed to achieve that."

David Lobell is a Center Fellow at the Freeman Spogli Institute for International Studies and at the Woods Institute for the Environment. The Program on Food Security and the Environment is a joint project of the Woods Institute and the Freeman Spogli Institute. The Precourt Institute for Energy and FSE provided funding for Jennifer Burney's research on agriculture and energy.


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