Valuation of Carbon Dioxide Emissions Obtained from Agricultural Development in Iran

Energy has special importance in the agricultural sector as an input. The initial estimates show that agricultural activities cause a quarter source of pollutant emissions in the world. Carbon Dioxide is the most important greenhouse gas which has played the main role in the absorption of infrared radiation of the atmosphere in past decades. Given the importance of the environment and the lack of proper analytical methods for environmental policymaking, presentation of models for assessing the relationship between economic activities and the environment seems to be very important and necessary. Hence, the detrimental effects of Carbon Dioxide as one of the most important greenhouse gases originating in the Iranian agricultural sector were evaluated in this study. For this purpose, the concept of shadow price of this pollutant was used. Results indicated that each kilogram Carbon Dioxide risen from fuel consumption in the agricultural sector, harms about 141 RLS in average per annum for the period of 1992-2010. In other words, the Carbon Dioxide emissions from the Iranian agricultural activities would incur about 1,744 billion RLS per year on average. Also, the results showed that cost of each kilogram of this pollutant has been increased significantly in the last two decades on average and therefore, it seems that providing the required inputs to control Carbon Dioxide emissions in the Iranian agricultural sector by granting environmental subsidies is inevitable.