John Gyamfi

Capitalisation and Participation in Net Zero: Perceptions of Farmers and Land Agents on Carbon Markets and Impacts on Land Values in Scotland

Scotland’s Woodland Carbon Code (WCC) and Peatland Code (PC) are central to the nation’s 2045 net-zero target, yet farmer participation remains persistently low and the valuation treatment of carbon income remains poorly understood. This PhD thesis investigates the twin challenges of participation and capitalisation within Scotland’s voluntary carbon markets, examining how farmers, tenants, and crofters perceive carbon payment schemes and how rural valuers and land agents are responding to an emergent asset class. Integrating an original PARCEL (Policy → Adoption → Risk-Return → Capitalisation → Equity → Land-use outcome) analytical framework with land rent and hedonic valuation theory, the study employs an explanatory sequential mixed-methods design. A national farmer survey is followed by semi-structured interviews and focus groups with farmers, rural valuers, land agents, and policy stakeholders. The research examines whether reported carbon-related land value premiums during the 2020–2022 market peak were grounded in transaction evidence or speculative expectation, how tenure structures mediate access and exclusion, and how permanence obligations and reversal risk interact with participation decisions. Findings will inform evidence-based recommendations for equitable scheme design, transparent valuation practice, and sustainable rural land markets in Scotland.