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Valuing Avoided Soil Erosion by Considering Private and Public Net Benefits

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  • Barry, Luke E.
  • Paragahawewa, Upananda Herath
  • Yao, Richard T.
  • Turner, James A.

Abstract

The population in New Zealand is expected to increase to over five million by the mid 2020’s from the current level of 4.3 million (Statistics New Zealand, 2009). An increasing demand for primary produce as a result may put pressure on marginal land to be farmed. Understanding the economic value of avoided erosion in New Zealand is therefore an important factor in policy making to optimise the soil related activities in the economy. Establishing a methodology for estimating the economic value of avoided soil erosion is the first step in assessing the problem. This study uses the future forest scenarios developed by Scion to identify potential afforestation areas and thereby compare the current erosion/sedimentation status under current land-use (non woody vegetation) with potential future afforestation. The study aims to quantify the incremental public and private net benefits from the change in scenario. The notion has come under different headings in the literature, such as on-site and off-site erosion effects or sediment and soil erosion effects, all of which recognize the importance of separation of effects to avoid double-counting. The separation into public and private benefits and costs in this case, while avoiding double-counting, will also help identify appropriate policy instruments to avoid soil erosion damage using the private and public net benefit framework (Pannell, 2008).

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Bibliographic Info

Paper provided by New Zealand Agricultural and Resource Economics Society in its series 2011 Conference, August 25-26, 2011, Nelson, New Zealand with number 115512.

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Date of creation: 2011
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Handle: RePEc:ags:nzar11:115512

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Web page: http://www.nzares.org.nz/
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Keywords: Environmental Economics and Policy; Land Economics/Use;

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  1. David J. Pannell, 2008. "Public Benefits, Private Benefits, and Policy Mechanism Choice for Land-Use Change for Environmental Benefits," Land Economics, University of Wisconsin Press, vol. 84(2), pages 225-240.
  2. de Groot, Rudolf S. & Wilson, Matthew A. & Boumans, Roelof M. J., 2002. "A typology for the classification, description and valuation of ecosystem functions, goods and services," Ecological Economics, Elsevier, vol. 41(3), pages 393-408, June.
  3. Knowler, Duncan & Bradshaw, Ben, 2007. "Farmers' adoption of conservation agriculture: A review and synthesis of recent research," Food Policy, Elsevier, vol. 32(1), pages 25-48, February.
  4. Dominati, Estelle & Patterson, Murray & Mackay, Alec, 2010. "A framework for classifying and quantifying the natural capital and ecosystem services of soils," Ecological Economics, Elsevier, vol. 69(9), pages 1858-1868, July.
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