Economic Potential for Soil Carbon Sequestration

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Economic Potential for Soil Carbon Sequestration
in the Nioro Region of Senegals Peanut Basin
by John Antle, Bocar Diagana, Jetse Stoorvogel
and Kara Gray NASA Scientific Workshop on
Land Management for Carbon SequestrationBamako,
Mali 26-27 February 2004
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Major biophysical problem in WA Sahel land
degradation, a severe constraint to food
production Major socioeconomic problem
increasing food insecurity and poverty
Policy issue How to enhance the sustainability
of agricultural production systems and reduce
poverty? Option Carbon sequestration with
alleged potential for contributing to
agricultural sustainability, poverty alleviation,
GHG emission mitigation, etc
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Extent of C potential needs thorough -
biophysical and - economic analysis
Several important issues to consider in the
assessment of this potential - what policies
to create incentives for C seq? - what
technical potential to store SOC and how much
economic returns to farmers? - which additional
social benefits, or co- benefits , take
account of full array of benefits and costs -
how to design appropriate and efficient
incentive mechanisms for soil C seq?
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Economic feasibility of soil carbon sequestration

• Few studies outside the US
• Previous research in Senegal
• Century model to predict carbon rates
• Evaluation of economic returns to practices
• No study combining biophysical and economic data
  and models to predict soil C sequestration at
  alternative C prices

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Purpose of this study

• Report preliminary results from a simulation
  analysis applying the Tradeoffs Analysis Model to
  the peanut-millet production system in the
  Southern Peanut Basin of Senegal (Nioro)
• Derive C supply curves showing the economic
  potential to sequester soil C in this production
  system

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Method The Tradeoff Analysis Model

• The TOA Model is a GIS-based system designed to
  integrate disciplinary data and models to
  implement the Tradeoff Analysis approach.

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TOA a modular approach that integrates
disciplinary data and models
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Fig l Integrated Assessment of Soil C
Sequestration using the Tradeoffs Analysis Model
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Study area and Data used

• Nioro area in the Southern Peanut Basin
• Annual rainfall about 750 mm
• average temperature 27,5 C
• millet and peanut main crops grown in annual
  rotation
• small crop parcels
• Data
• Farm household and plot surveys conducted by ENEA
  in 2001.
• Sample 100 households in thirteen villages of
  the Nioro administrative department

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Fertilizer use in the Nioro sample

• Low fertilizer application rates
• More than half of the fields received mineral
  fertilizer on peanut and half for millet

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Technological and Policy scenarios

• Technological scenarios
• Traditional practice of low fertilizer use
• Contract required use of at least 60 kg of
  active mineral fertilizer ingredient per ha
• The above combined with incorporation of
  additional crop residues in the soils.
• Policy scenarios variation of
• Peanut producer price
• Carbon price

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Crop residue management in Senegal

• High value as animal feed on and off-farm
• Costs of incorporation foregone value of the
  crop residue as animal feed additional labor
  costs associated with incorporation
• Incorporation not a widely adopted practice most
  likely because of the factors above, but lack of
  reliable data to confirm this
• Add agricultural equipment constraint

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Simulation Results
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Total C production potential at alternate C prices
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Sensitivity Analysis effects of labor costs for
crop residue incorporation
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Participation in carbon contracts
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Carbon rates vs Net returns
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Conclusions

• TOA Model integrated assessment of C
  sequestration potential in the Senegal Peanut
  Basin using biophysical and economic data models
  and simulation of carbon contract scenarios
• Main result increasing fertilizer use alone
  would result in a low potential for soil carbon
  sequestration,
• but, combining increased fertilizer use and
  crop residue incorporation could result in the
  sequestration of marketable quantities of carbon.
  
• Need accurate and complete data for full costing
  of crop residue incorporation practice

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Constraints and issues to address for a thorough
analysis of soil carbon sequestration potential

• Farming practices
• Understand/alleviate constraints to increased
  fertilizer use
• Crop residue management alternative uses
• Data needs
• Carbon stocks and rates
• Full costs and benefits of adopting practices
  that sequester soil C
• Institutional issues
• legal institutions enforceability of contracts
• land tenure property rights
• credit markets
• transaction costs

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For further information on the Tradeoff Analysis
Model, consult the following websiteswww.tradeo
ffs.montana.edu www.tradeoffs.wur.nl

• Thanks for your attention!!!