1. Introduction
Climate change concerns have motivated interest in incentivebased
agricultural practices that help reduce greenhouse gas
(GHG) emissions. The United Nations Framework Convention on
Climate Change and the Kyoto Protocol (UNFCCC, 2008) have
framed agreements and protocols to reduce GHG emissions. The
protocols utilize market-based mechanisms such as emission trading
aimed at creating a carbon market where emissions/reductions
can be exchanged. The US-EPA is applying cap-and-trade programs
(Paltsev et al., 2007) on industrial emissions. So far, the capped
emissions are focused on the power sector, which creates potential
opportunities to lower emissions in other sectors such as agriculture,
providing incentives for reductions that can be traded as