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Transfers 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

  • Feng, Hongli
  • Kurkalova, Lyubov A.
  • Kling, Catherine L.
  • Gassman, Philip W.

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 benenfits to include economic transfers. These transfers have often been mentioned as a co-benenfit, but little empirical work measruring 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 condition and income distributions in sub-regions.

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Bibliographic Info

Paper provided by Iowa State University, Department of Economics in its series Staff General Research Papers with number 12439.

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Date of creation: 16 Oct 2005
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Publication status: Published in Climatic Change, January 2007, vol. 80, pp. 91-107
Handle: RePEc:isu:genres:12439

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Postal: Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070
Phone: +1 515.294.6741
Fax: +1 515.294.0221
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Web page: http://www.econ.iastate.edu
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References

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  1. 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.
  2. Elbakidze, Levan & McCarl, Bruce A., 2004. "Should We Consider the Co-Benefits of Agricultural GHG Offsets?," Choices, Agricultural and Applied Economics Association, vol. 19(3).
  3. Feather, Peter & Hellerstein, Daniel & Hansen, LeRoy T., 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.
  4. Zhao, Jinhua & Kurkalova, Lyubov A. & Kling, Catherine L., 2004. "Alternative Green Payment Policies When Multiple Benefits Matter," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 33(1), April.
  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.
  6. Schneider, Uwe A. & Kumar, Pushpam, 2008. "Greenhouse Gas Mitigation through Agriculture," Choices, Agricultural and Applied Economics Association, vol. 23(1).
  7. 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.
  8. 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.
  9. Kurkalova, Lyubov A. & 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.
  10. Jinhua Zhao & Catherine L. Kling & Lyubov A. Kurkalova, 2003. "Alternative Green Payment Policies under Heterogeneity When Multiple Benefits Matter," Center for Agricultural and Rural Development (CARD) Publications 03-wp341, Center for Agricultural and Rural Development (CARD) at Iowa State University.
  11. 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.
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Cited by:
  1. Hediger, Werner, 2009. "The non-permanence of optimal soil carbon sequestration," 83rd Annual Conference, March 30-April 1, 2009, Dublin, Ireland 51057, Agricultural Economics Society.

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