Greenhouse gas emissions in Norwegian agriculture: The regional and structural dimension

Abstract

This paper studies the hypothesis that farm structure and the regional distribution of agricultural activity themselves have a significant impact on greenhouse gas (GHG) emissions from agriculture. Applying a dynamic model for the Norwegian agricultural sector covering the entire farm population, the model results support the hypothesis. Even without mitigation options, GHG emissions decline by 1.4 per cent if agriculture becomes regionally concentrated and increase by 1.5 per cent if a policy that favors a small-scale farm structure is put in place. Adding a carbon tax to a policy that leads to regional concentration, may help to reconcile competing policy objectives. A switch from animal production to crop production, and an extensification of animal production keeps a large resource base across the country while cutting GHG emissions.