The effect of heating technologies on CO(2) and energy efficiency of Dutch greenhouse firms

This paper uses Data Envelopment Analysis to compute measures of the efficiency (relative to a frontier) in terms of the use of all inputs as well as for single inputs like CO(2) and energy for a sample of greenhouse firms in the Netherlands over the period 1991-1995. These efficiency measures are generated for different firms specialised in production of vegetables, flowers, and potplants and with different heating technologies. The empirical results indicate that firms use energy quite efficiently and are less efficient in terms of CO(2) emissions. Firms using conventional heating are overall less efficiently using energy and CO(2) than firms using more advanced heating technologies. Most differences in efficiency between firm types and firms using different heating technologies are statistically significant. Scale adjustments can provide an important contribution to further efficiency improvements.     

Economic impacts of climatic variability and subsidies on European agriculture and observed adaptation strategies

In order to assess agricultural adaptation to climate impacts, new methodologies are needed. The translog distance function allows assessing interactions between different factors, and hence the influence of management on climate impacts. The Farm Accountancy Data Network provides extensive data on farm characteristics of farms throughout the EU15 (i.e. the 15 member states of the European Union before the extension in 2004). These data on farm inputs and outputs from 1990−2003 are coupled with climate data. As climate change is not the only change affecting European agriculture, we also include effects of subsidies and other changes on inputs and outputs of farms throughout Europe. We distinguish several regions and empirically assess (1) climate impacts on farm inputs and outputs in different regions and (2) interactions between inputs and other factors that contribute to the adaptation to these impacts. Changes in production can partly be related to climatic variability and change, but also subsidies and other developments (e.g. technology, markets) are important. Results show that impacts differ per region, and that ‘actual impacts’ cannot be explicitly separated into ‘potential impacts’ and ‘adaptive capacity’ as often proposed for vulnerability assessment. Farmers adapt their practices to prevailing conditions and continuously adapt to changing conditions. Therefore, ‘potential impacts’ will not be observed in practice, leaving it as a mainly theoretical concept. Factors that contribute to the adaptation also differ per region. In some regions more fertilizers or more irrigation can mitigate impacts, while in other regions this amplifies impacts. To project impacts of future climate change on agriculture, current farm management strategies and their influence on current production should be considered. This clearly asks for improved integration of biophysical and economic models.     

Carbon banks: an efficient means to exchange sequestered carbon

Carbon sequestration is one of the options that can be used to reduce atmospheric carbon, but its use in an offset market is complicated by the temporary nature of sequestered carbon and the risks associated with carbon release and price. In this paper a carbon bank is proposed to handle these problems. The bank is both an aggregator and a risk bearer. Sink generators deposit their credits with the bank and are paid for maintaining their "savings" with the bank. The carbon bank is also the source where large-scale emitters can come and buy either a temporary or permanent credit and pay the bank in return for the credit and services provided. The advantages of the bank over alternative institutional designs include lower transaction costs, flexible carbon credits and price, and lower risk to risk-averse parties. The carbon bank could be an effective means to deal with many of the unresolved issues within the forthcoming Canadian offset system.