The economic value of the Carbon Footprint in dairy farms in Argentina
Abstract
This paper deals with the analysis of possible conflicts between environmental and economic objectives in dairy systems in Argentina. The objective of this work was to economically value the reduction of the carbon footprint using a multicriteria model by weighted goals. The multi-criteria programming model based on weighted goals contemplates three criteria: one environmental, the carbon footprint, and two economic (global gross margin and total direct cost). The results show that there is a conflict between the global gross margin and the carbon footprint. From the analysis of the transformation curve between global gross margin and greenhouse gas emissions, it can be seen that by sacrificing 10% of the global gross margin, 33% of greenhouse gas emissions can be mitigated, with an opportunity cost of U $S 0.19 per ton eq. CO2, reaching almost US$ 5 to mitigate 100%. This result shows that there is an important margin for environmental policy. With reasonable goals it is possible to improve the performance of this type of establishments in environmental terms.
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