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  4. Financial Feasibility of Reverting Between Conventional and Carbon Farming

Financial Feasibility of Reverting Between Conventional and Carbon Farming

File(s)
RosalesAguilar_cornell_0058O_11773.pdf (689.08 KB)
Permanent Link(s)
https://doi.org/10.7298/pxmf-t906
https://hdl.handle.net/1813/113940
Collections
Cornell Theses and Dissertations
Author
Rosales Aguilar, Roshell
Abstract

In this model, a flex-option is created which encompasses the option for a farmer to practice no-till set-aside (NT) and traditional/conventional farming through tillage (CT). It is found that the flex-option would require an additional annual payment of $211.55 MT/acre to offset the farmers’ indifference to forgo traditional farming. Using the Chicago Mercantile Nature Based Global Emissions Offset Future Price (CME NGEO), the flex-option would need a price of $95.14/MT/acre/year for farmers to encounter arbitrage. This flex-model uses a Monte-Carlo simulation to indicate when arbitrage would be created which triggers a time when farmers can either continue in NT or revert to traditional farming CT.

Date Issued
2023-05
Keywords
Carbon Farming
•
Monte Carlo
Committee Chair
Turvey, Calum
Committee Member
Schmit, Todd
Degree Discipline
Applied Economics and Management
Degree Name
M.S., Applied Economics and Management
Degree Level
Master of Science
Type
dissertation or thesis
Link(s) to Catalog Record
https://newcatalog.library.cornell.edu/catalog/16176446

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