Undergraduate Research in Agricultural Economics


Date of this Version

June 2008


Everywhere you look, there is someone talking about global warming or the environment. Currently, there is a lot of hype about the ethanol industry. People are genuinely interested in the environment, perhaps more than ever before. Therefore, I decided to write this paper on the carbon farming and how farmers can capture the economic benefit of sequestering carbon. I will explain the importance of carbon sequestration, what a cap-and-trade policy is, the ability for agriculture to help out, ways in which the farmer can help out, and how offsets can be provided by the newly created Chicago Climate Exchange (CCX).