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Economic and Environmental Co-benefits of Carbon Sequestration in Agricultural Soils: Retiring Agricultural Land in the Upper Mississippi River Basin

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Author Info
Hongli Feng
Lyubov A. Kurkalova
Catherine L. Kling () (Center for Agricultural and Rural Development (CARD))
Philip W. Gassman () (Center for Agricultural and Rural Development (CARD))

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Abstract

This study investigates the carbon sequestration potential and co-benefits from policies aimed at retiring agricultural land in the Upper Mississippi River Basin, a large, heavily agricultural area. We extend the empirical measurement of co-benefits from the previous focus on environmental benefits to include economic transfers. These transfers have often been mentioned as a co-benefit, but little empirical work measuring the potential magnitude of these transfers has previously been undertaken. We compare and contrast five targeting schemes, each based on maximizing different physical environmental measures, including carbon sequestration, soil erosion, nitrogen runoff, nitrogen leaching, as well as the area enrolled in the program. In each case, the other environmental benefits and economic transfers are computed. We find that the geographic distribution of co-benefits (including economic transfers) varies significantly with the benefit targeted, implying that policy design related to targeting can have very important implications for both environmental conditions and income distributions in sub-regions.

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Publisher Info
Paper provided by Center for Agricultural and Rural Development (CARD) at Iowa State University in its series Center for Agricultural and Rural Development (CARD) Publications with number 05-wp384.

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Date of creation: Feb 2005
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Handle: RePEc:ias:cpaper:05-wp384

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Related research
Keywords: carbon sequestration; co-benefits; co-effects; economic transfers; environmental benefits targeting; Upper Mississippi River Basin.;

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  1. Lyubov A. Kurkalova & Catherine L. Kling & Jinhua Zhao, 2003. "Multiple Benefits of Carbon-Friendly Agricultural Practices: Empirical Assessment of Conservation Tillage," Center for Agricultural and Rural Development (CARD) Publications 03-wp326, Center for Agricultural and Rural Development (CARD) at Iowa State University. [Downloadable!]
  2. Alig, Ralph J. & Adams, Darius M. & McCarl, Bruce A., 1998. "Ecological and economic impacts of forest policies: interactions across forestry and agriculture," Ecological Economics, Elsevier, vol. 27(1), pages 63-78, October. [Downloadable!] (restricted)
  3. Feather, Peter & Hellerstein, Daniel & Hansen, Leroy, 1999. "Economic Valuation of Environmental Benefits and the Targeting of Conservation Programs: The Case of the CRP," Agricultural Economics Reports 34027, United States Department of Agriculture, Economic Research Service. [Downloadable!]
  4. Andrew J. Plantinga & JunJie Wu, 2003. "Co-Benefits from Carbon Sequestration in Forests: Evaluating Reductions in Agricultural Externalities from an Afforestation Policy in Wisconsin," Land Economics, University of Wisconsin Press, vol. 79(1), pages 74-85. [Downloadable!] (restricted)
  5. Ralph Alig & Darius Adams & Bruce McCarl & J. Callaway & Steven Winnett, 1997. "Assessing effects of mitigation strategies for global climate change with an intertemporal model of the U.S. forest and agriculture sectors," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 9(3), pages 259-274, April. [Downloadable!] (restricted)
  6. Zhao, Jinhua & Kling, Catherine L. & Kurkalova, Lyubov, 2003. "Alternative Green Payment Policies under Heterogeneity When Multiple Benefits Matter," Staff General Research Papers 10682, Iowa State University, Department of Economics. [Downloadable!]
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  7. Burtraw, Dallas & Krupnick, Alan & Palmer, Karen & Paul, Anthony & Toman, Michael & Bloyd, Cary, 2003. "Ancillary benefits of reduced air pollution in the US from moderate greenhouse gas mitigation policies in the electricity sector," Journal of Environmental Economics and Management, Elsevier, vol. 45(3), pages 650-673, May. [Downloadable!] (restricted)
  8. Matthews, Stephen & O'Connor, Raymond & Plantinga, Andrew J., 2002. "Quantifying the impacts on biodiversity of policies for carbon sequestration in forests," Ecological Economics, Elsevier, vol. 40(1), pages 71-87, January. [Downloadable!] (restricted)
  9. Kurkalova, Lyubov & Kling, Catherine L. & Zhao, Jinhua, 2003. "Multiple Benefits of Carbon-Friendly Agricultural Practices: Empirical Assessment of Conservation Tillage in Iowa," Staff General Research Papers 10194, Iowa State University, Department of Economics.
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