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The Use of Markets To Increase Private Investment in Environmental Stewardship

Author

Listed:
  • Ribaudo, Marc
  • Hansen, LeRoy T.
  • Hellerstein, Daniel
  • Greene, Catherine R.

Abstract

U.S. farmers and ranchers produce a wide variety of commodities for food, fuel, and fiber in response to market signals. Farms also contain significant amounts of natural resources that can provide a host of environmental services, including cleaner air and water, flood control, and improved wildlife habitat. Environmental services are often valued by society, but because they are a public good—that is, people can obtain them without paying for them—farmers and ranchers may not benefit financially from producing them. As a result, farmers and ranchers under-provide these services. This report explores the use of market mechanisms, such as emissions trading and eco-labels, to increase private investment in environmental stewardship. Such investments could complement or even replace public investments in traditional conservation programs. The report also defines roles for government in the creation and function of markets for environmental services.

Suggested Citation

  • Ribaudo, Marc & Hansen, LeRoy T. & Hellerstein, Daniel & Greene, Catherine R., 2008. "The Use of Markets To Increase Private Investment in Environmental Stewardship," Economic Research Report 56473, United States Department of Agriculture, Economic Research Service.
    • Handle: RePEc:ags:uersrr:56473
    DOI: 10.22004/ag.econ.56473
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    References listed on IDEAS

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    Cited by:

    1. Ribaudo, Marc & Savage, Jeffrey, 2014. "Controlling non-additional credits from nutrient management in water quality trading programs through eligibility baseline stringency," Ecological Economics, Elsevier, vol. 105(C), pages 233-239.
    2. Catherine L. Kling, 2011. "Economic Incentives to Improve Water Quality in Agricultural Landscapes: Some New Variations on Old Ideas," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 93(2), pages 297-309.
    3. Hugo Couderé, 2018. "To Blend or not to Blend: Towards a Belgian Blended Finance Policy," BeFinD Working Papers 0128, University of Namur, Department of Economics.
    4. Valcu, Adriana Mihaela, 2013. "Agricultural nonpoint source pollution and water quality trading: empirical analysis under imperfect cost information and measurement error," ISU General Staff Papers 201301010800004451, Iowa State University, Department of Economics.
    5. Coralie Calvet & Claude Napoléone & Jean-Michel Salles, 2015. "The Biodiversity Offsetting Dilemma: Between Economic Rationales and Ecological Dynamics," Sustainability, MDPI, vol. 7(6), pages 1-22, June.
    6. Jenkins, W. Aaron & Murray, Brian C. & Kramer, Randall A. & Faulkner, Stephen P., 2010. "Valuing ecosystem services from wetlands restoration in the Mississippi Alluvial Valley," Ecological Economics, Elsevier, vol. 69(5), pages 1051-1061, March.
    7. Hellerstein,Daniel & Hitaj, Claudia & Smith, David & Davis, Amélie, 2017. "Land Use, Land Cover, and Pollinator Health: A Review and Trend Analysis," Economic Research Report 263074, United States Department of Agriculture, Economic Research Service.
    8. Weng, Weizhe & Boyle, Kevin J. & Carey, Cayelan & Cobourn, Kelly M. & Dugan, Hilary & Farrell, Kaitlin & Hanson, Paul & Brahma, Sreeya Brahma & Ward, Nicole & Weathers, Kathleen, 2018. "Coupling Water Quality Numerical Simulation and Hedonic Models to Evaluate Impact of Changes in Nutrient Loading," 2018 Annual Meeting, August 5-7, Washington, D.C. 274030, Agricultural and Applied Economics Association.
    9. Valcu, Adriana & Rabotyagov, Sergey S. & Kling, Catherine L., 2013. "Flexible Practice-Based Approaches For Controlling Multiple Agricultural Nonpoint-Source Water Pollution," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150450, Agricultural and Applied Economics Association.
    10. Catherine L. Kling & Yiannis Panagopoulos & Sergey S. Rabotyagov & Adriana M. Valcu & Philip W. Gassman & Todd Campbell & Michael J. White & Jeffrey G. Arnold & Raghavan Srinivasan & Manoj K. Jha & Je, 2014. "LUMINATE: linking agricultural land use, local water quality and Gulf of Mexico hypoxia," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 41(3), pages 431-459.
    11. Unknown, 2008. "The 30-Year Challenge: Agriculture's Strategic Role in Feeding and Fueling a Growing World," Issue Reports 45719, Farm Foundation.
    12. Sergey Rabotyagov & Catherine L. Kling & Philip W. Gassman & Nancy N. Rabalais & R. Eugene Turner, 2012. "Economics of Dead Zones: Linking Externalities from the Land to their Consequences in the Sea, The," Center for Agricultural and Rural Development (CARD) Publications 12-wp534, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    13. Hansen, LeRoy T., 2009. "The Viability of Creating Wetlands for the Sale of Carbon Offsets," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 34(2), pages 1-16, August.
    14. Ribaudo, Marc & Greene, Catherine & Hansen, LeRoy & Hellerstein, Daniel, 2010. "Ecosystem services from agriculture: Steps for expanding markets," Ecological Economics, Elsevier, vol. 69(11), pages 2085-2092, September.
    15. Timothy Capon & Michael Harris & Andrew Reeson, 2013. "The Design of Markets for Soil Carbon Sequestration," Economic Papers, The Economic Society of Australia, vol. 32(2), pages 161-173, June.
    16. Yang, Wanhong & Bryan, Brett A. & MacDonald, Darla Hatton & Ward, John R. & Wells, Geoff & Crossman, Neville D. & Connor, Jeffrey D., 2010. "A conservation industry for sustaining natural capital and ecosystem services in agricultural landscapes," Ecological Economics, Elsevier, vol. 69(4), pages 680-689, February.

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