Shadow Values of Carbon Sequestration: A Case Study of the Czech Republic

Lukáš ČechuraHelena ŘezbováJiří VacekZdeňka Žáková KroupováIveta Mlezivová

DOI 10.7160/aol.2025.170302
No 3/2025, September
pp. 17-25

Čechura, L., Řezbová, H., Vacek, J., Žáková Kroupová, Z. and Mlezivová, I. (2025) "Shadow Values of Carbon Sequestration: A Case Study of the Czech Republic", AGRIS on-line Papers in Economics and Informatics, Vol. 17, No. 3, pp. 17-25. ISSN 1804-1930. DOI 10.7160/aol.2025.170302.

Abstract

This paper estimates the shadow values of total carbon sequestration in Czech cereal production. We use a production model with multiple outputs and inputs, using an input distance function (IDF) to estimate shadow price of land. The shadow prices of land and the amount of total carbon sequestration are then used to estimate the shadow values of carbon sequestration for a selected group of crops. The results present considerable differences in shadow values across both crops types and farm sizes.

Keywords

Carbon sequestration, shadow price, input distance function, FADN.

References

  1. Aertsens, J., De Nocker, L., Gobin, A. (2013) "Valuing the carbon sequestration potential for European agriculture", Land Use Policy, Vol. 31, pp. 584-594. E-ISSN 1873-5754, ISSN 0264-8377. DOI 10.1016/j.landusepol.2012.09.003.
  2. Andrés, P., Doblas-Miranda, E., Rovira, P., Bonmatí, A., Ribas, À., Mattana, S., Romanyà, J. (2022) "Research for AGRI Committee – Agricultural potential in carbon sequestration-Humus content of land used for agriculture and CO2 storage", European Parliament, Policy Department for Structural and Cohesion Policies, Brussels. [Online] Available: https://www.europarl.europa.eu/thinktank/en/document/IPOL_STU(2022)699655 [Accessed: May 15, 2025].
  3. Arellano, M. and Bond, S. (1991) "Some tests of specification for panel data: Monte Carlo evidence and an application to employment equations", Review of Economic Studies, Vol. 58, No. 2, pp. 277-297. E-ISSN 1467-937X, ISSN 0034-6527. DOI 10.2307/2297968.
  4. Bamiere, L., Jayet, P.-A., Kahindo, S. and Martin, E. (2021) "Carbon sequestration in French agricultural soils: A spatial economic evaluation", Agricultural Economics, Vol. 52, No. 2, pp. 301-316. E-ISSN 1805-9295, ISSN 0139-570X. DOI 10.1111/agec.12619.
  5. Bao, L., Liu, Y., Ding, Y., Shang, J., Wei, Y., Tan, Y., Zi, F. (2022) "Interactions between phenolic acids and microorganisms in rhizospheric soil from continuous cropping of panax notoginseng", Frontiers in Microbiology, Vol. 13. ISSN 1664-302X. DOI 10.3389/fmicb.2022.791603.
  6. Bossio, D. A., Cook‐Patton, S. C., Ellis, P. W., Fargione, J., Sanderman, J., Smith, P., Wood, S., Zomer, R. J., von Unger, M., Emmer, M. I. and Griscom, B. W. (2020) "The role of soil carbon in natural climate solutions", Nature Sustainability, Vol. 3, No. 5, 391-398. ISSN 2398-9629. DOI 10.1038/s41893-020-0491-z.
  7. Breure, T. S., De Rosa, D., Panagos, P., Cotrufo, M. F., Jones, A. and Lugato E. (2025) "Revisiting the soil carbon saturation concept to inform a risk index in European agricultural soils", Nature Communications, Vol. 16, p. 2538. E-ISSN 2041-1723. DOI 10.1038/s41467-025-57355-y.
  8. European Commission. (2023) "The common agricultural policy 2023-27". [Online] Available: https://agriculture.ec.europa.eu/common-agricultural-policy/cap-overview/cap-2023-27_en [Accessed: July 16, 2025].
  9. European Parliament, D.-G. f. I. P. (2015) "EU export refunds for agricultural products (Tech. Rep.No. IPOL-STU(2015)563.386)", European Parliament. [Online] Available: https://www.europarl.europa.eu/RegData/etudes/STUD/2015/563386/IPOL STU(2015)563386 EN.pdf [Accessed: June 1, 2025].
  10. Eurostat (2021a) "Price indices of agricultural products, output (2010 = 100) - annual data [apri_pi10_outa]. [Online]. Available: https://ec.europa.eu/eurostat/databrowser/view/APRI_PI10_OUTA/default/table?lang=en [Accessed: June 6, 2021].
  11. Eurostat (2021b) "Price indices of agricultural products, output (2015 = 100) - annual data [apri_pi15_outa]". [Online]. Available: https://appsso.eurostat.ec.europa.eu/nui/show.do?dataset=apri_pi15_outa&lang=en [Accessed: June 6, 2021].
  12. Eurostat (2021c) "Price indices of the means of agricultural production, input (2010 = 100) - annual data [apri_pi10_ina]". [Online]. Available: https://appsso.eurostat.ec.europa.eu/nui/show.do?dataset=apri_pi10_ina&lang=en [Accessed: June 6, 2021].
  13. Eurostat (2021d) "Price indices of the means of agricultural production, input (2015 = 100) - annual data [apri_pi15_ina]". [Online]. Available: https://appsso.eurostat.ec.europa.eu/nui/show.do?dataset=apri_pi15_ina&lang=en [Accessed: June 6, 2021].
  14. Guan, X., Zhang, J., Wu, X. and Cheng, L. (2018) "The shadow prices of carbon emissions in china’s planting industry", Sustainability, Vol. 10, No. 3, p. 753. E-ISSN 2071-1050. DOI 10.3390/su10030753.
  15. Hansen, L. P. (1982) "Large Sample Properties of Generalized Method of Moments Estimator", Econometrica, Vol. 50, No. 4, pp. 1029-1054. E-ISSN 1468-0262, ISSN 0012-9682. DOI 10.2307/1912775.
  16. Joint Research Centre. (2025a) "EU soil observatory dashboard indicators". [Online]. Available: https://joint-research-centre.ec.europa.eu/eu-soil-observatory-euso/eu-soil-observatory-dashboard-indicators_en [Accessed: July 16, 2025].
  17. Joint Research Centre. (2025b) "Soil organic carbon at risk in large part of European agriculturalland". [Online]. Available: https://joint-research-centre.ec.europa.eu/jrc-news-and-updates/soil-organic-carbon-risk-large-part-european-agricultural-land-2025-03-18_en [Accessed: July 16, 2025].
  18. Kaushal, S., Sharma, N., Singh, I. and Singh, H. (2023) "Soil carbon sequestration: a step towards sustainability ", International Journal of Plant & Soil Science, Vol. 35, No. 11, pp. 160-171. ISSN 2320-7035. DOI 10.9734/ijpss/2023/v35i112957.
  19. Kumbhakar, S. C. and Lovell, C. A. K. (2000) "Stochastic Frontier Analysis", In: "Stochastic Frontier Analysis", 1st ed. Cambridge University Press. E-ISBN 9781139174411. DOI 10.1017/CBO9781139174411.
  20. Kwiatkowski, C. A., Harasim, E. and Pawłowski, L. (2020) "Can catch crops be an important factor in carbon dioxide sequestration?", International Journal of Conservation Science, Vol. 11, No. 4, pp. 1005-1018. E-ISSN 2067-533X. [Online]. Available: https://ijcs.ro/public/IJCS-20-74_Kwiatkowski.pdf [Accessed: July 5, 2025].
  21. Li, Y., Luo, C., Lv, J., Chen, L., Dong, K. and Dong, Y. (2022) "Co‐culture of faba bean with wheat provides evidence for intercropping faba bean to alleviate the occurrence of fusarium wilt under the autotoxic stress of salicylic acid", Plant Pathology, Vol. 71, No. 9, pp. 1944-1955. E-ISSN 1365-3059. DOI 10.1111/ppa.13624.
  22. Ma, L., Ma, S., Chen, G., Lu, X., Zhang, C., Wei, R., Xiaojie, F., Ling, X., Xucheng, Z., Quiang, Ch. and Li, S. (2024) "Transcriptomics and metabolomics revealed the synthesis and potential role of flavonoids in pea roots under continuous cropping obstacles", Physiologia Plantarum, Vol. 176, No 1. p. e14185. E-ISSN 1399-3054. DOI 10.1111/ppl.14185.
  23. McCauley, K. and Barlow, K. E. (2023) "Regenerative agriculture: increasing plant diversity and soil carbon sequestration on agricultural landscapes", SURG Journal, Vol. 15, No. 1. ISSN 2291-1367. DOI 10.21083/surg.v15i1.7196.
  24. Ministry of Agriculture of the Czech Republic. (2022) "Cap strategic plan for the period 2023-2027", FAO Legal Office. [Online]. Available: https://faolex.fao.org/docs/pdf/cze231942.pdf [Accessed: July 16, 2025].
  25. Panagos, P. and De Rosa, D. (2023) "Indicators to support the soil perspectives of the Common Agricultural Policy (CAP)", Publications Office of the European Union. [Online]. Available: https://publications.jrc.ec.europa.eu/repository/handle/JRC132234 [Accessed: July 5, 2025]. E-ISBN 978-92-76-99010-9. DOI 10.2760/235604.
  26. Pawłowska, M., Pawłowski, A., Pawłowski, Ł., Cel, W., Wójcik-Oliveira, K., Kwiatkowski, C. A., Harasim, E. and Wang, L. (2019) "Possibility of carbon dioxide sequestration by catch crops". Ecological Chemistry and Engineering S, Vol. 26, No. 4, pp. 641-649. E-ISSN 2084-4549. DOI 10.1515/eces-2019-0046.
  27. Raj Kunwar, S., Chambers, R. G., Gentry, L. F. and Serra, T. (2025) "What are the carbon services from cover-crop adoption worth from farmers’ perspective?", American Journal of Agricultural Economics. E-ISSN 1467-8276, ISSN 0002-9092. DOI 10.1111/ajae.70005.
  28. Shephard, R. W. (1970) "Theory of cost and production functions", Princeton University Press, 322 p. E-ISBN 978-1-4008-7108-7.
  29. Sprunger, C. D., Martin, T. and Mann, M. (2020) "Systems with greater perenniality and crop diversity enhance soil biological health", Agricultural & Environmental Letters, Vol. 5, No. 1., p. e20030. E-ISSN 2471-9625. DOI 10.1002/ael2.20030.
  30. Zhou, P., Zhou, X. and Fan, L. W. (2014) "On estimating shadow prices of undesirable outputs with efficiency models: A literature review", Applied Energy, Vol. 130, pp. 799-806. E-ISSN 1872-9118. DOI 10.1016/J.APENERGY.2014.02.049.

Full paper

  Full paper (.pdf, 547.36 KB).