How Potential Carbon Policies Could Affect Cotton Location and Production Practices In the United States

 

This study conducts a life cycle assessment (LCA) for the carbon emissions and estimates the carbon sequestered in cotton production in the USA.  Given the uncertainty regarding the type of future carbon legislation, this study presents a suite of estimates to analyze how potential carbon policies would affect cotton producers across the United States. From a cap-and-trade stand point the ratio of dollars of profit to pounds of carbon emitted per acre ($/lb of C) appears to be the driving factor in which areas will experience a loss/addition of cotton acreage. From a carbon offset stand point the estimates generated in this study do not indicate, even under high carbon prices, that an offset market will change tillage methods within an area. It would appear that if a carbon market did develop it would more likely affect where cotton is produced rather than affecting the tillage type.