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New Zealand falls out of love with sheep farming as lucrative pine forests spread
(www.theguardian.com)
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I don't know how total emissions stack up for wool vs synthetic production, but the article suggests that sustainability be used as a rationale for subsidies.
I guess you have to start weighing up impacts of higher stock numbers vs impacts of non-degradable plastic. What do carbon emissions of sheep farming look like compared to say cattle? Because subsidising wool would surely lead to an oversupply of sheep meat.