1 Economic Potential of Greenhouse Gas Mitigation Measures in Chinese Agriculture 1 Wen Wang 1,4 , Dominic Moran 2 , Frank Koslowski 2 , Dali Rani Nayak 3 , Eli Saetnan 5 , Pete Smith 3 , Abbie Clare 2 , Erda Lin 1 , Liping Guo 1 , Jamie Newbold 5 , Genxing Pan 6 , Kun Cheng 6 , Xiaoyuan Yan 7 , Laura Cardenas 8 1 Institute of Environment and Sustainable Development in Agriculture, Chinese Academy of Agricultural Sciences, China, 2 Land Economy and Environment Research Group, “Đotland’s Ruƌal College, UK, 3 University of Aberdeen, Aberdeen AB24 3UU, Scotland, 4 Climate Economics Chair, Paris-Dauphine University, France, 5 Aberystwyth University, UK, 6 Nanjing Agriculture University, China, 7 Institute of Soil Science Nanjing of Chinese Academy of Sciences, China, 8 Rothamsted Research, UK Abstract Emissions mitigation in China faces a range of challenges in terms of understanding sources of greenhouse gases (GHG) and the technical potential for reductions in each sector of the economy. Agricultural and land use emissions accounting is particularly challenging due to the biophysical complexity and heterogeneity of farming systems. SAIN research has contributed to improving our understanding of the technical potential of mitigation measures in this sector (i.e. what works). But for policy purposes it is important to convert this into a feasible economic potential, which provides a perspective on whether agricultural emissions reduction (measures) are low cost relative to mitigation measures and overall potential offered in other sectors of the economy. This note outlines the estimated economic mitigation potential available in China’s agƌiĐultuƌal seĐtoƌ. We develop a marginal abatement cost curve (MACC) representing the cost of mitigation measures applied to baseline agricultural practices. The MACC demonstrates that while the sector offers a maximum technical potential of 412 MtCO 2 e in 2020, a reduction of 131 MtCO 2 e is potentially available at zero or negative cost (i.e. a cost saving); and 346 MtCO2e (approximately 29% of the total) can be abated at a threshold carbon price ≤ ¥ 370 (approximately £40) per tCO 2 e. We outline the assumptions underlying MACC construction and indicate the barriers to realising the indicated level of mitigation. 1 This policy brief is based on the findings of the China-UK PƌojeĐt Estimates of future agricultural greenhouse gas emissions and mitigation in China. The project is funded by the UK's Department for Environment, Food and Rural Affairs and by China's Ministry of Agriculture. The project forms part of the UK-China Sustainable Agriculture Innovation Network-SAIN (see www.sainoline.org) Policy Brief No. 8 July 2013