Carbon pricing in agriculture: a systematic literature review

Daniela Tatiane de Souza; Fernando Antônio de Pádua Paim; Lauro Rodrigues Nogueira Júnior; Carlos Cesar Ronquim; Pedro Gilberto Cavalcante Filho

Carbon pricing in agriculture: a systematic literature review

2025

Daniela Tatiane de Souza | Fernando Antônio de Pádua Paim | Lauro Rodrigues Nogueira Júnior | Carlos Cesar Ronquim | Pedro Gilberto Cavalcante Filho

Abstract Carbon pricing involves assigning a monetary value to greenhouse gas emissions. This paper systematically reviews the state of carbon pricing in global agriculture over a 20-year period. Based on a systematic literature review, carbon valuation methods were correlated with prices attributed to determinants identified in academic publications, as well as extrapolated to the Brazilian agricultural environment. There was variation in carbon prices (minimum of USD 2.6/tCO2e and maximum of USD 157.5/tCO2e), determined by different socio-economic, agricultural and geographical heterogeneities. Our results showed negative relationship between Gross Domestic Product (GDP) per capita and CO2 emissions per capita, indicating high elasticity of emissions in response to changes in carbon prices. There was also positive relationship between nitrogen fertilizer use per capita and carbon price. In 2021, the estimated carbon value for Brazilian agriculture using quantile regression was USD 11.54/tCO2e. It is therefore critical that scientifically robust carbon pricing methodologies be applied to agriculture to serve as benchmarks for national environmental valuation systems.

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