The efficiency of sequestering carbon in agricultural soils

Agricultural tillage practices are im portant hum an-induced activities that can alter carbon emissions fro m agricultural soils and have the potential to contribute significantly to reductions in greenhouse gas em ission (L a i et al., The Potential of U.S. Cropland, 1998). This research investigates the expected costs of sequestering carbon in agricultural soils under different subsidy and m arket-based policies. Using detailed N ational Resources Inventory data, we estimate the probability that farm ers adopt conservation tillage practices based on a variety of exogenous characteristics and profit from conventional practices. These estimates are used with physical m odels of carbon sequestration to estim ate the subsidy costs of achieving increased carbon sequestration with alternative subsidy schemes. (JEL Q 38).