Economic considerations for the development of a carbon farming scheme

Publication date: 07/11/2022
Extent: 20 pages

Contributions by: Siân Mooney and Kathryn Janoski, O’Neill School of Public and Environmental Affairs, Indiana University, USA

Chapter synopsis: This chapter presents the current state of carbon markets and some of the challenges faced by individual producers, private companies and governments interested in carbon farming. The chapter identifies the two primary payment design mechanisms proposed for carbon payments and the complexities faced by individual producers navigating the requirements of the current credit markets including: lack of uniformity across markets (compliance and voluntary) and low acceptance of credits from SCS that affect finance. It also addresses design elements that affect transactions costs such as measurement, reporting and verification; the spatial scale of projects; the need for producer technical assistance and opportunities and questions surrounding compensation for other bundled attributes such as ecosystem services.

DOI: 10.19103/AS.2022.0106.26