An economic analysis of the influence of carbon credits on farm management practices

he thesis conducted an economic analysis of carbon credit trading and focused on how a carbon market would influence farmers' decision-making processes in adopting eligible management practices for carbon sequestration in agriculture. A linear programming model was constructed for a representative crop farmer in southwestern Ontario. The choice variables are crop rotations and tillage practices. One of the major findings is that the present prices are not conducive for management changes. A farmer would switch from conventional tillage to no-till practices at ;The threshold carbon price causing a switch in tillage would increase with increases in crop prices. Using carbon sequestration coefficients from the Century biophysical simulation model rather than from local field experiments lowers the threshold price but not significantly, and forage production becomes a profitable option if the carbon price is...