| Abstract [eng] |
In recent years, the agricultural sector has faced increasing pressure not only to ensure economic viability but also to contribute to climate change mitigation objectives. European Union climate policy is increasingly focused not only on reducing greenhouse gas emissions but also on the removal of carbon dioxide from the atmosphere. In this context, biochar and carbon credit schemes are becoming significant tools for sustainable agriculture, as they have the potential to simultaneously address soil degradation, emission reduction, and farm economic stability. However, in Lithuania, the practical application of these solutions remains limited, and their economic justification has not yet been sufficiently and systematically analysed. The object of the master’s thesis is the use of biochar and carbon dioxide credit schemes for the development of the sustainable agriculture market in Lithuania. The study seeks to assess under which economic conditions the application of biochar and the generation of carbon credits can be economically justified and contribute to the development of the sustainable agriculture market. The aim of the master’s thesis is to evaluate the economic impact of biochar and carbon dioxide credit schemes on the development of the sustainable agriculture market in Lithuania, taking into account both macroeconomic and microeconomic factors. Research methods: the study applies a comprehensive research methodology, including scientific literature analysis, statistical data analysis, correlation analysis, and the evaluation of baseline and alternative economic scenarios of the analysed farm. The empirical analysis assesses the economic effect of biochar application, the dynamics of carbon credit prices, biochar application costs, and the potential for fertiliser cost savings under different macroeconomic conditions. Results: the main results of the study indicate that the economic impact of biochar and carbon dioxide credit schemes is not uniform and depends on macroeconomic factors such as fertiliser price fluctuations, agricultural commodity prices, and the dynamics of the carbon credit market. It was found that in certain periods biochar application generates a negative net economic effect; however, under favourable price and cost combinations, it can become economically justified and contribute to improved farm financial stability. The findings suggest that biochar can be regarded as a long-term, cyclical, and market-adaptive sustainable agriculture tool with the potential to support the development of the sustainable agriculture market in Lithuania. |
