Economic Feasibility Study of Agricultural Coops as Catalysts in GHG Markets

Award Information
Agency: Department of Agriculture
Branch: N/A
Contract: 2005-33610-15509
Agency Tracking Number: 2005-00544
Amount: $79,734.00
Phase: Phase I
Program: SBIR
Awards Year: 2005
Solicitation Year: N/A
Solicitation Topic Code: N/A
Solicitation Number: N/A
Small Business Information
Augusta Systems, Inc.
3606 Collins Ferry Road, Suite 202, Morgantown, WV, 26505
HUBZone Owned: N
Woman Owned: N
Socially and Economically Disadvantaged: N
Principal Investigator
 Jesse Gandee
 Economic Analyst
 (304) 599-3200
Business Contact
 Jesse Gandee
Title: Economic Analyst
Phone: (304) 599-3200
Research Institution
Domestically and globally, governments have established greenhouse gas (GHG) emissions management measures, including regulatory and voluntary regimes, with opportunities for market-based trading of GHG emissions reduction units (ERUs). Previous research has revealed that numerous on-farm activities can significantly reduce GHG emissions. Therefore, farm owners could provide the emerging markets with tradable GHG ERUs. To enter into the GHG market and acquire positive financial returns from these activities, farm owners would need to reduce the marketing costs associated with GHG trading, e.g. monitoring and verification of carbon reductions, bargaining of emissions reduction contracts. In more conventional farm commodity markets, agricultural cooperatives (CO-OPs) are used to reduce the cost of marketing, processing, and distribution of raw-food products. A reasonable assumption is that GHG commodities could be also offered by CO-OPs. Thus, to assist with opportunities for rural economies to benefit from investments in and trading of ERUs, this project seeks to better understand the feasibility of using established CO-OPs to cultivate and market GHG ERUs. This research effort will develop information on the costs of marketing GHG ERUs, the financial and administrative infrastructure required to market GHG ERUs, and the potential financial benefit to farm owners of entering the GHG market.

* information listed above is at the time of submission.

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