The economics of emissions in rice production: a survey-data-driven approach in Vietnam

Purpose – This paper aims to focus on scrutinizing the economics of greenhouse gas (GHG) emissions in Vietnam’s rice production sector. Design/methodology/approach – Using surveyed data from household rice producers, the smallest available production scale, the author delves into the economics of GHG emissions, constructs a data-driven bottom-up marginal abatement cost curve for Vietnam’s rice production, and evaluates the impacts of carbon pricing on production outputs and GHG emissions. Findings – The author’s estimates reveal that the average profit earned per tonne of GHG emissions is $240/ tCO2. Notably, the profit earning per tonne of GHG emissions varies substantially across producers, indicating significant opportunities for improvement among low-efficiency producers. The analysis suggests that a reasonable carbon price would yield a modest impact on the national rice output. The quantitative analysis also reaffirms that the primary driver of GHG emissions in Vietnam’s rice production stems from non-energy inputs and industrial processes rather than the utilisation of energy inputs, emphasizing the importance of improving cultivation techniques