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Institutions and the Value of Nonpoint Source Measurement Technology: Carbon Sequestration in Agricultural Soils

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Author Info
Kurkalova, Lyubov
Kling, Catherine L.
Zhao, Jinhua

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Abstract

The development of technologies for accurate field-scale carbon assessment allows the implementation of more efficient policies than can be implemented in their absence. We estimate the value of accurate measurement technology by estimating the gains from implementing a more efficient policy, one that targets carbon reductions at the field scale but requires accurate field-scale measurement technology, relative to a practice-based policy that can be implemented in the absence of such technology. We find large cost savings due to improved targeting of conservation tillage subsidies for the state of Iowa. The cost savings depend significantly on the choice of baseline carbon, while the ability of the government to cost discriminate has little impact on the value of accurate measurement technology. Keywords: carbon sequestration, green payment policy, value of measurement technology.

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Publisher Info
Paper provided by Iowa State University, Department of Economics in its series Staff General Research Papers with number 10676.

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Date of creation: 11 Jul 2003
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Publication status: Published in Applied Economics, November 2004, Vol. 36, No. 20, pp. 2287-2298.
Handle: RePEc:isu:genres:10676

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Postal: Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070
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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Feng, Hongli & Zhao, Jinhua & Kling, Catherine L., 2000. "Towards Implementing Carbon Markets in Agriculture," Staff General Research Papers 1917, Iowa State University, Department of Economics. [Downloadable!]
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  2. GR Pautsch & LA Kurkalova & BA Babcock & CL Kling, 2001. "The Efficiency Of Sequestering Carbon In Agricultural Soils," Contemporary Economic Policy, Western Economic Association International, vol. 19(2), pages 123-134, 04. [Downloadable!] (restricted)
  3. Mooney, Sian & Antle, John & Capalbo, Susan & Paustian, Keith, 2002. "Contracting For Soil Carbon Credits: Design And Costs Of Measurement And Monitoring," 2002 Annual meeting, July 28-31, Long Beach, CA 19616, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  4. Antle, John & Capalbo, Susan & Mooney, Sian & Elliott, Edward & Paustian, Keith, 2003. "Spatial heterogeneity, contract design, and the efficiency of carbon sequestration policies for agriculture," Journal of Environmental Economics and Management, Elsevier, vol. 46(2), pages 231-250, September. [Downloadable!] (restricted)
  5. Pautsch, Gregory R. & Kurkalova, Lyubov A. & Babcock, Bruce A. & Kling, Catherine L., 2000. "Efficiency of Sequestering Carbon in Agricultural Soils (The)," Staff General Research Papers 1870, Iowa State University, Department of Economics. [Downloadable!]
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  6. Millock, Katrin & Sunding, David & Zilberman, David, 2002. "Regulating Pollution with Endogenous Monitoring," Journal of Environmental Economics and Management, Elsevier, vol. 44(2), pages 221-241, September. [Downloadable!] (restricted)
  7. Kurkalova, Lyubov & Kling, Catherine L. & Zhao, Jinhua, 2003. "Green Subsidies in Agriculture: Estimating the Adoption Costs of Conservation Tillage from Observed Behavior," Staff General Research Papers 10354, Iowa State University, Department of Economics. [Downloadable!]
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