Designing a GovernmentFacilitated Carbon Aggregation Model for Small and Marginal Farmers in Backward Regions of Karnataka

This study designs a Government-Facilitated Carbon Aggregation Model (GFCAM) to enable small and marginal farmers in backward regions of Karnataka to participate in voluntary carbon markets. Despite growing global demand for carbon offsets under the Paris Agreement framework, empirical evidence from drought-prone districts such as Yadgir, Raichur, and Kalaburagi reveals extremely low awareness (<10%) among farmers regarding carbon credit opportunities. Using a mixed-method design, the study surveyed 600 small and marginal farmers and employed regression and logistic models to analyze determinants of awareness and participation intention. Results show that education and landholding size significantly influence awareness, while institutional trust—particularly trust in government—is the strongest predictor of participation willingness. Revenue simulations demonstrate that district-level aggregation can generate viable supplementary income while reducing transaction and monitoring costs. Based on empirical findings, the study proposes a multi-tier institutional framework comprising Village Carbon Committees, District Carbon Facilitation Cells, and a State Carbon Authority. The model addresses market failure through public-sector mediation, aggregation economies, digital monitoring, and risk mitigation mechanisms. The research contributes to climate governance, institutional economics, and inclusive climate finance literature by demonstrating how subnational institutional design can convert carbon markets into equitable rural development instruments.