Managing tree-crops for climate mitigation. An economic evaluation trading-off carbon sequestration with market goods

Climate change must not be forgotten in the conceptualization of the circular economy and ought to be functionally incorporated and inspire its rationale. The call for the efficient use of resources implies the exploitation of nature-based policies to combat climate change. Nature-based policies are among the most cost-effective ways to fight climate change, while at the same time resulting in significant environmental, social and economic co-benefits. The circular economy should facilitate nature-based policies, as climate objectives are far from being reached and more concrete actions, exploiting all possibilities, should be undertaken. The present study investigates the mitigation potentials induced by a land-based activity, fruit tree cultivations. With the objective of exploiting these potentials, the economic value of the ecosystem service of CO₂ sequestration by tree cultivations is estimated. A stated preferences framework, exploiting the actual purchasing experience of citizens in real markets, was applied. Citizens stated their preferences within a context defined by their preferences revealed in actual markets. The actual economic impacts of stated preferences are then more clearly perceived by citizens, thus reducing the bias induced by the hypothetical framework. A significant value, around 1200€ per hectare, was estimated for cultivations adopting methods maximizing CO2 sequestration. Such estimates can support the design of coupled agricultural-climate policies by offering farmers appropriate incentives to adopt mitigation rich practices, with significant benefits for the economic, environmental and social sustainability of rural areas. Our results may contribute to the realization of the so-called “carbon farming” schemes envisaged by the forthcoming Common Agricultural Policy (CAP) in Europe and at the same time boost the development of eco-labeling schemes and voluntary CO₂ markets.