The social-, economic- and political implications of market-based measures targeting agricultural greenhouse gas emissions - A Rapid Evidence Assessment

This REA examines the role of market-based mechanisms in reducing agricultural greenhouse gas (GHG) emissions, including carbon taxes, carbon markets, emissions trading systems (ETS), and a hypothetical Carbon Border Adjustment Mechanism (CBAM). Carbon taxes price emissions directly, while voluntary carbon markets facilitate emission offsetting through credit trading. The ETS sets emission caps with tradable allowances, and a CBAM mitigates carbon leakage through import tariffs. Economic, social and political implications are explored, highlighting incentives, redistribution effects and policy challenges. Findings suggest that effective implementation requires transparent policies, tailored incentives, and robust monitoring to balance environmental, economic and social objectives.

This document was produced as an assignment for the FPM001 Food and Public Policy module undertaken at the Centre for Food Policy, City St Georges, University of London. The document has been written to address a marking criteria and learning outcomes.