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Methane digesters-biogas recovery systems that use methane from
manure to generate electricity-have not been widely adopted in the
United States because costs have exceeded benefits to operators.
Burning methane in a digester reduces greenhouse gas emissions from
manure management. A policy or program that pays producers for
these emission reductions-through a carbon offset market or
directly with payments-could increase the number of livestock
producers who would profit from adopting a methane digester. We
developed an economic model that illustrates how dairy and hog
operation size, location, and manure management methods, along with
electricity and carbon prices, could influence methane digester
profits. The model shows that a relatively moderate increase in the
price of carbon could induce significantly more dairy and hog
operations, particularly large ones, to adopt a methane digester,
thereby substantially lowering emissions of greenhouse gases.
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