title: Integrated farm-level marginal abatement cost-curve modelling
Creators: name: Ogunpaimo, Oyinlola Rafiat
Publisher: name: University of Galway
Year: 2024
Subjects: subject: Economics
subject: Agriculture
subject: Gaseous emissions

description: Mitigation of gaseous emissions remains a crucial global concern, prompting various policies aimed at reducing the impact of harmful gases on human health and the environment. The European Union (EU) has intensified its efforts, proposing a minimum 55% reduction in greenhouse gas emissions (GHG) below 1990 levels by 2030. In line with this, the EU National Emissions Ceiling Directive (NECD) sets targets, for the reduction of ammonia (NH3) and other air pollutants. Ireland has set a target of a 5% reduction in ammonia (NH3) emissions from 2005 levels by 2030. The agricultural sector in Ireland significantly contributes to gaseous emissions, accounting for 38.1% and 99.4% of total GHG and NH3 emissions, respectively. Addressing this issue is imperative to combat air pollution, climate change, and associated environmental and health risks. While many studies focus on individual gases, limited attention has been given to how mitigation measures impact both GHG and NH3 emissions at the farm level. Furthermore, there is a gap in understanding the implications of farm-level heterogeneity on designing effective policies for emission reduction, as well as the complementary or conflicting effects of mitigation measures. Using EU Farm Accountancy Data Network data for Ireland in 2020, this thesis conducts a comprehensive farm-level analysis of the marginal abatement cost curve, focusing on GHG and NH3 mitigation measures. The study encompasses five different farm systems, assessing interactions and heterogeneous effects. Additionally, the thesis evaluates the complementary or conflicting impacts of these measures across various dimensions of harmful gaseous emissions. Employing a cost-benefit analysis framework, the research provides a holistic examination of the costs and benefits associated with a range of mitigation measures capable of addressing GHG, NH3, or both, thereby assessing their effectiveness across the diverse spectrum of farm systems in Ireland. Results indicate that the relative effectiveness of the mitigation measure varies depending on the gaseous emission dimension being examined. Mitigation measures such as liming, switching to protected urea and a crude protein reduction in livestock diets were primarily cost-saving. However, some measures fluctuate between cost-positive and cost-negative depending on the farm system type. The findings show that no two farm-level MACC curves are the same, thus farm heterogeneity needs to be accounted for efficient policy design. Furthermore, a lower abatement potential was reported for the combined implementation of selected mitigation measures compared to the sum of individual measures due to interaction effects. The thesis thus highlights that optimal policy design should be tailored to reflect farms’ characteristics and any analyses that fail to account for such synergistic and antagonistic relationships impacts may lead to sub-optimal policy decisions.