Both a laboratory incubation experiment using soils from an agricultural field and a forest and field measurements at the same locations were conducted to determine nitrous oxide (N₂O) production and consumption (reduction) potentials using the acetylene (C₂H₂) inhibition technique. Results from the laboratory experiment show that the agricultural soil had a stronger N₂O reduction potential than the forest soil, as indicated by the N₂O/N₂ ratio in denitrification products. Without C₂H₂ inhibition, N₂O could reach a maximum concentration of 51 and 296 ppmv in headspace of the agricultural and forest soil slurries, respectively. Addition of glucose decreased the maximum N₂O concentration to 22 ppmv in headspace of the agricultural soil slurries, but increased to 520 ppmv in the forest soil slurries. Addition of exogenous N₂O did not change such N₂O accumulation maxima during the incubations. The field measurements show that average N₂O emission rates were 0.56 and 0.59 kg N ha^-1 in the agricultural field and forest, respectively. When C₂H₂ was provided in the field measurements, N₂O emission rates from the agricultural field and forest increased by 38 and 51%, respectively. Nitrous oxide consumption under elevated N₂O condition (about 300 ppmv) was found in all five agricultural field measurements, but only in three of the six forest measurements under the same conditions. Field measurements agreed with the laboratory experiment that N₂O reduction activity, which plays a critical role in abating N₂O emissions from soils, largely depended on soil characteristics associated with land use.