Abstract:
In this paper, we compare many of the widely available estimated global benefits of
abatement with the costs to Irish agriculture, as estimated by the CAPRI model. We apply
the model to Ireland only, in a simple comparative static simulation, and assume fixed
prices. We focus more on methane reduction than GWP reduction as a whole, because
most of the discussion regarding global warming from agriculture in Ireland has focused
on methane. Our results suggest that the costs of methane abatement to the farming sector
do indeed outweigh the global benefits, except in the case of very small methane
abatements. However, if one also factors in the gains to society of the FEOGA budget
rebates, then all losses disappear, and in fact net financial gains occur. We conclude that
this may have implications for the design of methane reduction policies.
