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<p>Sustainable rice production plays a vital role in reducing greenhouse gas emissions and supporting climate-resilient agriculture in Vietnam’s Mekong Delta. This study assesses both the economic and environmental performance of eco-friendly rice farming models relative to conventional systems, with a particular focus on their potential to generate carbon credits and inform compensation rates for emission reduction initiatives. Data obtained from structured interviews with 748 farmers were examined through stochastic frontier analysis to assess inefficiencies in carbon-emitting inputs and to estimate greenhouse gas emissions in accordance with IPCC life cycle guidelines. The abatement cost method was applied to determine the economic value of emission reductions. The findings reveal that eco-friendly rice significantly reduces emissions, with SRP-AWD-IPM-GAP achieving the highest reductions (-64.61&#xa0;kg CO2eq/ha) and qualifying for incentives. However, models such as Rice-Shrimp (-7.565&#xa0;million VND/ha) and RS-ORG (-7.358&#xa0;million VND/ha) require substantial financial support due to lower yields and higher production costs, receiving compensation rates up to 394.53 thousand VND/kg CO2eq (15.49 USD/kg CO2eq). The results highlight that while carbon credits can help offset financial losses, a dynamic pricing mechanism is needed to balance emission reductions, economic viability, and market conditions.</p>

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Economic Valuation of Carbon Credits in Eco-friendly Rice Farming in the Mekong Delta

  • 期刊论文

  • 发表日期：

    2025年10月31日

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  • Vo Hong Tu,
  • Nguyen Thuy Trang

摘要

Sustainable rice production plays a vital role in reducing greenhouse gas emissions and supporting climate-resilient agriculture in Vietnam’s Mekong Delta. This study assesses both the economic and environmental performance of eco-friendly rice farming models relative to conventional systems, with a particular focus on their potential to generate carbon credits and inform compensation rates for emission reduction initiatives. Data obtained from structured interviews with 748 farmers were examined through stochastic frontier analysis to assess inefficiencies in carbon-emitting inputs and to estimate greenhouse gas emissions in accordance with IPCC life cycle guidelines. The abatement cost method was applied to determine the economic value of emission reductions. The findings reveal that eco-friendly rice significantly reduces emissions, with SRP-AWD-IPM-GAP achieving the highest reductions (-64.61 kg CO2eq/ha) and qualifying for incentives. However, models such as Rice-Shrimp (-7.565 million VND/ha) and RS-ORG (-7.358 million VND/ha) require substantial financial support due to lower yields and higher production costs, receiving compensation rates up to 394.53 thousand VND/kg CO2eq (15.49 USD/kg CO2eq). The results highlight that while carbon credits can help offset financial losses, a dynamic pricing mechanism is needed to balance emission reductions, economic viability, and market conditions.