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Date
2023-03-16Subject
630 Agriculture GhanaUmweltzertifikathandelNachhaltigkeitÖkosystemdienstleistungLandnutzungAgroforstwirtschaftBiologische LandwirtschaftKakaoKlimaänderungMetadata
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Aufsatz
Can carbon payments improve profitability of traditional conventional and organic cocoa agroforests? A case study in the Eastern Region of Ghana
Abstract
This study investigates the carbon (C) sequestration of traditional cocoa agroforestry systems in the Eastern Region of Ghana and the theoretical impact of CO₂ emission rights trading on their profitability. The study was conducted in four villages of Suhum Municipality, two each with either conventional or organic cocoa cultivation systems. Profitability was calculated using net present value of net cashflow (NPV), benefit cost ratio (BCR), and modified internal rate of return (MIRR). Carbon revenues were calculated using CO₂ emission trading rights prices ranging from 7.5 € tCO2eq.−1 (average EU trading price) to 42 € tCO2eq.−1(estimated social cost of CO₂ release). We tested the sensitivity of profitability indicators with three scenarios: 300% increase in interest rates, 20% yield reduction, and 10% increase in cost. NPV without CO2 payment for conventional agroforest was 20% higher than that of organic agroforest. Contrarily, BCR for the organic system was 30% larger than for the conventional counterpart. Profitability indicators for both systems were most sensitive to the 300% interest rate. The average C sequestered was 153 ± 13 t ha−1 whereby soil contributed the largest fraction with an average of 88 ± 11 t ha−1. Total C sequestered in the organic system was 30% higher than in the conventional system. In conclusion, CO₂ payments can improve the attractiveness of organic cocoa cultivation for farmers, although the paid price must be oriented to the estimated social costs caused by CO₂ release rather than the currently used trading price in the EU.
Citation
In: Agroforestry Systems Volume 97 / Issue 5 (2023-03-16) , S. 813-831 ; eissn:1572-9680Sponsorship
Gefördert im Rahmen des Projekts DEALCitation
@article{doi:10.17170/kobra-202308018553,
author={Agbotui, Deogratias Kofi and Ingold, Mariko and Wiehle, Martin and Bürkert, Andreas},
title={Can carbon payments improve profitability of traditional conventional and organic cocoa agroforests? A case study in the Eastern Region of Ghana},
journal={Agroforestry Systems},
year={2023}
}
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2023-08-14T14:04:32Z 2023-08-14T14:04:32Z 2023-03-16 doi:10.17170/kobra-202308018553 http://hdl.handle.net/123456789/14988 Gefördert im Rahmen des Projekts DEAL eng Namensnennung 4.0 International http://creativecommons.org/licenses/by/4.0/ carbon trading climate change ecosystem service land use system organic agroforestry sustainability 630 Can carbon payments improve profitability of traditional conventional and organic cocoa agroforests? A case study in the Eastern Region of Ghana Aufsatz This study investigates the carbon (C) sequestration of traditional cocoa agroforestry systems in the Eastern Region of Ghana and the theoretical impact of CO₂ emission rights trading on their profitability. The study was conducted in four villages of Suhum Municipality, two each with either conventional or organic cocoa cultivation systems. Profitability was calculated using net present value of net cashflow (NPV), benefit cost ratio (BCR), and modified internal rate of return (MIRR). Carbon revenues were calculated using CO₂ emission trading rights prices ranging from 7.5 € tCO2eq.−1 (average EU trading price) to 42 € tCO2eq.−1(estimated social cost of CO₂ release). We tested the sensitivity of profitability indicators with three scenarios: 300% increase in interest rates, 20% yield reduction, and 10% increase in cost. NPV without CO2 payment for conventional agroforest was 20% higher than that of organic agroforest. Contrarily, BCR for the organic system was 30% larger than for the conventional counterpart. Profitability indicators for both systems were most sensitive to the 300% interest rate. The average C sequestered was 153 ± 13 t ha−1 whereby soil contributed the largest fraction with an average of 88 ± 11 t ha−1. Total C sequestered in the organic system was 30% higher than in the conventional system. In conclusion, CO₂ payments can improve the attractiveness of organic cocoa cultivation for farmers, although the paid price must be oriented to the estimated social costs caused by CO₂ release rather than the currently used trading price in the EU. open access Agbotui, Deogratias Kofi Ingold, Mariko Wiehle, Martin Bürkert, Andreas doi:10.1007/s10457-023-00828-0 Ghana Umweltzertifikathandel Nachhaltigkeit Ökosystemdienstleistung Landnutzung Agroforstwirtschaft Biologische Landwirtschaft Kakao Klimaänderung publishedVersion eissn:1572-9680 Issue 5 Agroforestry Systems 813-831 Volume 97 false
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