Costs and Benefits of Reducing Nitrous Oxide Emissions from Canadian Agriculture

Kenneth P. Green

Canadaâs government has launched an initiative to reduce Canadian emissions of nitrous oxide (N20), a greenhouse gas emitted mainly by Canadaâs agricultural sector.
Canadaâs total GHG emissions amount to 1.6 percent of global emissions. Canadaâs N20 emissions are approximately 4.5 percent of its total, hence, (.016*.045=0.0007) or about seven one-hundredths of one percent of global greenhouse gas emissions.
Canadaâs nitrous oxide emissions have been declining as a share of global N20 emissions since 1850, dropping from above two percent of the global total to its current level of 1.6 percent. Despite Canadaâs small, and diminishing share of global N20 emissions, its proposed nitrous oxide control policies will incur significant government spending. Recently announced government spending initiatives intended to reduce agricultural nitrous oxide emissions are approximately CDN$1.6 billion. This is to complement approximately CDN$283 million per year in spending by the agriculture sector to the same end. These additional costs to the agriculture sector would likely be passed on to consumers.
These changes would produce nitrous oxide emission reduction equivalent to 50â75 percent of governmentâs emission reduction target, suggesting additional measures will be required.
The net impact of the governmentâs proposed nitrous oxide emission reduction programs will impose costs on Canadaâs agriculture sector and its derivative products, but provide no measurable (climate) benefit, violating a fundamental principle of sound public policy.