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Changes in Profitability of a Double Cropping using the Carbon Fixation Method

탄소고정방식을 활용한 농작물 이모작의 수익성 변화

  • Mo, Tae-Jun (Dept. of Agricultural Economics and Rural Development, Seoul National University) ;
  • Kim, Brian H.S. (Dept. of Agricultural Economics and Rural Development, Research Institute of Agriculture and Life Sciences, Seoul National University)
  • 모태준 (서울대학교 농경제사회학부) ;
  • 김홍석 (서울대학교 농경제사회학부 교수 및 농업생명과학연구원)
  • Received : 2020.04.09
  • Accepted : 2020.05.29
  • Published : 2020.05.30

Abstract

The purpose of this study is to calculate the annual carbon reduction of crops according to the carbon fixation method of agricultural land, therefore to analyze whether the economic inducement of farmers to switch from single cropping to double cropping if the amount of carbon reduction were traded on the Korea Exchange. The analysis targets were Gyeonggi Province, which was divided into four areas to compare the difference between agricultural income and carbon income by crop and cropping system. Agricultural profit was estimated by multiplying the prior data of 2012 by the change rate of the consumer price index, and carbon income was calculated through the carbon reduction for each crop and the average transaction price of KAU19 traded on the Korea Exchange. According to the analysis, the profit rate of double cropping in all areas is -110.4% to 23% compared to single cropping, when only agricultural profit is taken into account, with no economic inducement for farmers to change the cropping system. However, when carbon income is taken into account together, the profit rate of double cropping rises significantly from 122.5% to 238.9% over a single operation in all areas, resulting in an economic inducement to switch the cropping system. This research is meaningful in that farming households could raise their income by additional carbon income, and that carbon credits could be supplied at Korea Exchange to further boost the carbon emission exchange.

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