Spatial economic modelling of greenhouse gas abatement on agricultural land

This thesis investigates how agricultural land can be used for cost-effective abatement of greenhouse gas (GHG) emissions. The impacts of spatial relationships and characteristics of land on the costs of producing biofuel for the purpose of emissions abatement, and on global emissions caused by agricultural policies, are evaluated using spatial economic models.The first paper in the thesis examines the cost-effective spatial configuration of production of second-generation biofuel on agricultural land in Sweden. To this end, a spatial economic biofuel localization model is developed. The results show that the localization of the few high-capacity biofuel production facilities is mainly determined by the opportunity costs for feedstock.In the second paper, the focus is on the role of second-generation biofuel for costeffective GHG emissions abatement in the transport sector. The biofuel model is expanded to incorporate transport fuel consumption and GHG emissions. Findings indicate that domestic biofuel is a cost-effective abatement measure, with high potential for reducing overall costs, particularly at low emissions targets.The third paper investigates how the use of abandoned agricultural land affects the role of biofuel as a cost-effective GHG emissions abatement option in the transport sector. Abandoned agricultural land is found to reduce costs of emissions abatement substantially, primarily attributed to carbon sequestration and low feedstock costs.In the fourth paper, the focus is shifted to the agricultural sector. This paper assesses the impact of coupled production subsidies under the EU Common Agricultural Policy on agricultural GHG emissions in the EU and globally, utilizing an agricultural sector model. The removal of the coupled subsidies is found to decrease EU GHG emissions, but there is a 75 per cent global emissions leakage.