A time to change? The supply of climate mitigation products from land-use change in northern NSW

With the impending introduction of an Australian Carbon Pollution Reduction Scheme, farmers andlandholders in rural Australia have increased opportunities to participate in the market. This includes theadoption of land-use change to sequester additional carbon in exchange for carbon credits and theproduction of a renewable energy source (biofuels). However, these land-use changes compete withexisting farm enterprises and may contain significant transaction costs. Therefore it is necessary for theinstitutional arrangements to provide adequate incentives for landholders to adopt these land-usechanges. This paper examines the potential supply of these land-use changes for climate mitigation fromlandholders in a northern NSW catchment. These results will allow further investigation of how incentivestructures and policy instruments may be developed to increase the supply of these goods fromlandholders.