- Volume 26 Issue 2
DOI QR Code
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)
- Received : 2020.04.09
- Accepted : 2020.05.29
- Published : 2020.05.30
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.
- Cho, S. R., 2018, Current Status of Carbon Dioxide Emissions in Korea and Tasks for Implementation of the Paris Agreement, National Assembly Research Service.
- Choi, S. W., Kim, H. Y., Kim, J., 2015, Development of 'Carbon Footprint' Concept and Its Utilization Prospects in the Agricultural and Forestry Sector, Korean Journal of Agricultural and Forest Meteorology, 17(4): 358-383. https://doi.org/10.5532/KJAFM.2015.17.4.358
- Greenhouse Gas Inventory & Research Center of Korea, 2015, National Greenhouse Gas Inventory Report of Korea in 2015.
- Gyeonggi Institute of Agricultural Technology, 2010, 2010 Gyeonggi-do Test Report.
- Jeong, G. Y., Lee, J. S., Ko, J. Y., Choi, Y. D., Yoon, E. S., 2008, Effects rice-barely cropping systems on soil compaction in rice paddy, Korean Society of Soil Science and Fertilizer.
- Jung, H. G., Kim, C. G., 2015, Goals and Strategies for Reducing Greenhouse Gas in the Agricultural Sector, Korea Rural Economic Institute, No. 115.
- Jung, H. G., Kim, Y. J., Lee, H. J., 2016, A Study on the Activation of Low Carbon Agriculture in response to the Post-New Climate System, Korea Rural Economic Institute.
- Kim, G. H., Shim S. H., 2017, Diagnosis and Improvement of Greenhouse Gas Emission Trading System in Korea, Korea Energy Economics Institute, Vol. 17-04.
- Kim, C. G., KY. H., Jung, H. G., 2010, The Status of Trade in Carbon Emissions in Agriculture: Focused on the United States, Japan, EU, Australia, New Zealand, Korea Rural Economic Institute.
- Kim, C. G., Jung H. G., Kim J. S., Moon D. H., 2013, Introducing Direct Payment Program for Low-Carbon Farming Practices and Creating an Action Plan Guideline, Korea Rural Economic Institute.
- Kim, G. Y., Ko, B. G., Jeong, H.C., Roh K. A., Shim, K. M., Lee, J. T., Lee, D. B., Hong, S. Y., Kwon, S. I., 2009, Estimating Carbon Fixation of 14 Crops in Korea, Korean J. Soil Sci. Fert. 42(6):460-466.
- Koo, Y. M., 2015, Current Status and Issues of the Emissions Trading System, KEI focus, 3(2)
- Lee, H. S., 2016, A Study on the Estimation of Absorption Rate in the Farmland Sector of LULUCF, Korea Statistics Research Institute.
- Lee, J. H., 2012, The Farming Approaches to the Voluntary Carbon Markets and the Political Support System, GRI REVIEW 14(1)
- Lee, S. H., 2010, Economic Cost and Institutional Problems of Emissions Trading System, Korea Economic Research Institute, 10(12)
- Moon J. Y., Han M. S., Song J. H., Kim E. M., 2018, The Introduction of Carbon Price System and Its Economic Impact to Reduce Greenhouse Gas in the international community, Korea Institute for International Economic Policy, Vol. 17-31.
- Park, C. C., 2017, A Study on the Analysis of Carbon Trading Market and the Activation Plan in Korea, Korea University.
- Rho, S. W., 2009, A Study on Introduction of Greenhouse Gas Emission Trading Scheme in Korea, Journal of environmental policy, 8(4)