Research & Projects

The study examines the economic valuation of carbon services provided by agricultural cover crops compared to traditional non-cover crop practices. It emphasizes the role of cover crops in enhancing carbon sequestration and reducing greenhouse gas emissions within the agricultural sector, which is a significant contributor to global emissions. 

The primary objective is to derive shadow prices for the carbon services offered by cover crops and compare these with traditional farming methods. Another goal is to assess the economic incentives necessary for farmers to adopt sustainable practices such as cover cropping. 

Shadow pricing revealed that cover crops provide superior environmental benefits at a lower marginal cost, offering a compelling argument for their wider adoption supported by appropriate policy incentives. 

Agricultural production processes are complex systems characterized by multiple inputs and outputs, where the efficient use of resources is crucial for sustainability and profitability. This complexity requires robust analytical methods to model and understand agricultural production technology. It is easier to model production technologies with regular inputs and outputs that have established market prices. However, with environmental outputs that lack market prices, it is challenging. Shadow prices help assign economic values to non-marketed goods, integrating them into economic analysis and decision-making. The precision of shadow pricing depends on the accuracy of the production technology model used.

The paper adopts a constructive approach to model crop production technology, incorporating the concepts of conjugate duality. The study begins by defining a foundational model of standard inputs and primary output. The study progresses by integrating environmental dimensions into this model, expanding it to include beneficial and adverse environmental outputs.

Extreme weather events, including excessive heat, prolonged droughts, and intense precipitation, are becoming increasingly common due to climate change. As a result, farmers are encountering challenges in maintaining consistent crop yields and quality. These escalating events present significant challenges to agricultural crop production. 

Given the increasing frequency of extreme weather events and greater climatic variability, sustainable agricultural practices are gaining importance. Farmers are seeking strategies to mitigate risks and maintain productivity in response to these challenges. For example, cover cropping and conservation tillage operations are recognized as sustainable approaches that can help mitigate extreme weather impacts while reducing environmental harm and enhancing farm productivity. 

The study’s main goal is to assess the role of adaptation measures to extreme weather events used by farmers in agricultural production. Specifically, this study aims to determine whether adopting environmentally friendly management practices can enhance agricultural productivity and to provide valuable insights into sustainable practices’ effectiveness in changing climate patterns, informing future agricultural strategies and policies.