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Modelling the supply of ecosystem services from agriculture: a minimum-data approach

Listed author(s):
  • Antle, John M.
  • Valdivia, Roberto O.

We argue that to support agriculture–environmental policy decision making, stakeholders need ‘quantitative back-of-the-envelope’ analysis that is timely and sufficiently accurate to make informed decisions. We apply this concept to the analysis of the supply of ecosystem services from agriculture. We present a spatially explicit production model and show how it can be used to derive the supply of ecosystem services in a region. This model shows that the supply of ecosystem services can be derived from the spatial distribution of opportunity cost of providing those services. We then show how this conceptual model can be used to develop a minimum-data (MD) approach to the analysis of the supply of ecosystem services from agriculture that can be implemented with the kinds of secondary data that are available in most parts of the world. We apply the MD approach to simulate the supply of carbon that could be sequestered in agricultural soils in the dryland grain-producing region of Montana. We find that the supply curve derived from the MD approach can approximate the supply curve obtained from a more elaborate model based on site-specific data, and can do so with sufficient accuracy for policy analysis.

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File URL: http://purl.umn.edu/116858
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Article provided by Australian Agricultural and Resource Economics Society in its journal Australian Journal of Agricultural and Resource Economics.

Volume (Year): 50 (2006)
Issue (Month): 1 (March)
Pages:

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Handle: RePEc:ags:aareaj:116858
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  1. Jeffrey H. Dorfman & Catherine L. Kling & Richard J. Sexton, 1990. "Confidence Intervals for Elasticities and Flexibilities: Reevaluating the Ratios of Normals Case," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 72(4), pages 1006-1017.
  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.
  3. John M. Antle & Susan M. Capalbo, 2001. "Econometric-Process Models for Integrated Assessment of Agricultural Production Systems," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(2), pages 389-401.
  4. Wu, JunJie & Adams, Richard M. & Kling, Catherine L. & Tanaka, Katsuy, 2004. "From Microlevel Decisions to Landscape Changes: An Assessment of Agricultural Conservation Policies," ISU General Staff Papers 200402010752581352, Iowa State University, Department of Economics.
  5. 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.
  6. Feng, Hongli & Kling, Catherine L. & Gassman, Philip W., 2004. "Carbon Sequestration, Co-Benefits, and Conservation Programs," Choices, Agricultural and Applied Economics Association, vol. 19(3).
  7. JunJie Wu & Richard M. Adams & Catherine L. Kling & Katsuya Tanaka, 2004. "From Microlevel Decisions to Landscape Changes: An Assessment of Agricultural Conservation Policies," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(1), pages 26-41.
  8. Lubowski, Ruben N. & Plantinga, Andrew J. & Stavins, Robert N., 2006. "Land-use change and carbon sinks: Econometric estimation of the carbon sequestration supply function," Journal of Environmental Economics and Management, Elsevier, vol. 51(2), pages 135-152, March.
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