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Designation of Co-benefits and Its Implication for Policy: Water Quality versus Carbon Sequestration in Agricultural Soils, The

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Author Info
Secchi, Silvia
Jha, Manoj
Kurkalova, Lyubov
Feng, HongLi
Gassman, Philip W.
Kling, Catherine L.

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Abstract

This study investigates the implications of treating different environmental benefits as the primary target of policy design. We focus on two scenarios, estimating for both of them in-stream sediment, nutrient loadings, and carbon sequestration. In the first, we assess the impact of a program designed to improve water quality in Iowa on carbon sequestration, and in the second, we calculate the water quality impact of a program aimed at maximizing carbon sequestration. In both cases, the policy instrument is the retirement of land from agricultural production. Our results, limited to the state of Iowa, and to the case of set-aside for water quality or carbon sequestration purposes, indicate that the amount of co-benefits depends on what indicators are used to measure water quality. In general, this study shows that improving “water quality” in the sense of reducing nutrient or sediment loadings is too vague. Even if it is taken to refer to in-stream nutrients, because the responses of nitrogen and phosphorus to conservation efforts are not well correlated, this terminology may not provide much guidance.

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Paper provided by Iowa State University, Department of Economics in its series Staff General Research Papers with number 12264.

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Date of creation: 23 Mar 2005
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Handle: RePEc:isu:genres:12264

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  1. 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.
  2. Lipton, Douglas, 2004. "The Value Of Improved Water Quality To Chesapeake Bay Boaters," Marine Resource Economics, Marine Resources Foundation, vol. 19(2). [Downloadable!]
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  3. 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!]
  4. Hongli Feng & Lyubov A. Kurkalova & Catherine L. Kling & Philip W. Gassman, 2004. "Environmental Conservation in Agriculture: Land Retirement versus Changing Practices on Working Land," Center for Agricultural and Rural Development (CARD) Publications 04-wp365, Center for Agricultural and Rural Development (CARD) at Iowa State University. [Downloadable!]
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  5. Desvousges, William H. & Smith, V. Kerry & Fisher, Ann, 1987. "Option price estimates for water quality improvements: A contingent valuation study for the monongahela river," Journal of Environmental Economics and Management, Elsevier, vol. 14(3), pages 248-267, September. [Downloadable!] (restricted)
  6. Ribaudo, Marc O. & Heimlich, Ralph & Claassen, Roger & Peters, Mark, 2001. "Least-cost management of nonpoint source pollution: source reduction versus interception strategies for controlling nitrogen loss in the Mississippi Basin," Ecological Economics, Elsevier, vol. 37(2), pages 183-197, May. [Downloadable!] (restricted)
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