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

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  • Antle, John M.
  • Valdivia, Roberto O.

Abstract

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.

Suggested Citation

  • Antle, John M. & Valdivia, Roberto O., 2006. "Modelling the supply of ecosystem services from agriculture: a minimum-data approach," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 0(Issue 1), pages 1-15, March.
  • 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. 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).
    3. 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, April.
    4. 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.
    5. 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.
    6. 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.
    7. 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.
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    Cited by:

    1. Oscar Cacho & Leslie Lipper, 2006. "Abatement and Transaction Costs of Carbon-Sink Projects Involving Smallholders," Working Papers 06-13, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA).
    2. Cloé Garnache, 2015. "Fish, Farmers, and Floods: Coordinating Institutions to Optimize the Provision of Ecosystem Services," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 2(3), pages 367-399.
    3. Claessens, L. & Stoorvogel, J.J. & Antle, J.M., 2008. "Ex ante assessment of dual-purpose sweet potato in the crop-livestock system of western Kenya: A minimum-data approach," Agricultural Systems, Elsevier, vol. 99(1), pages 13-22, December.
    4. Skidmore, Samuel & Santos, Paulo & Leimona, Beria, 2014. "Targeting REDD+: An Empirical Analysis of Carbon Sequestration in Indonesia," World Development, Elsevier, vol. 64(C), pages 781-790.
    5. Immerzeel, Walter & Stoorvogel, Jetse & Antle, John, 2008. "Can payments for ecosystem services secure the water tower of Tibet," Agricultural Systems, Elsevier, vol. 96(1-3), pages 52-63, March.
    6. Cacho, Oscar J., 2008. "Carbon markets, transaction costs and bioenergy," 2008 Conference (52nd), February 5-8, 2008, Canberra, Australia 6007, Australian Agricultural and Resource Economics Society.
    7. Valdivia, Roberto O. & Antle, John M. & Stoorvogel, Jetse J., 2012. "Coupling the Tradeoff Analysis Model with a market equilibrium model to analyze economic and environmental outcomes of agricultural production systems," Agricultural Systems, Elsevier, vol. 110(C), pages 17-29.
    8. Skidmore, Samuel & Santos, Paulo & Leimona, Beria, 2012. "Seeing REDD: A Microeconomic Analysis of Carbon Sequestration in Indonesia," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126688, International Association of Agricultural Economists.
    9. Wossink, Ada & Swinton, Scott M., 2007. "Jointness in production and farmers' willingness to supply non-marketed ecosystem services," Ecological Economics, Elsevier, vol. 64(2), pages 297-304, December.
    10. Shikuku, Kelvin M. & Valdivia, Roberto O. & Paul, Birthe K. & Mwongera, Caroline & Winowiecki, Leigh & Läderach, Peter & Herrero, Mario & Silvestri, Silvia, 2017. "Prioritizing climate-smart livestock technologies in rural Tanzania: A minimum data approach," Agricultural Systems, Elsevier, vol. 151(C), pages 204-216.
    11. repec:eee:ecoser:v:4:y:2013:i:c:p:60-72 is not listed on IDEAS
    12. Wünscher, Tobias & Engel, Stefanie & Wunder, Sven, 2008. "Spatial targeting of payments for environmental services: A tool for boosting conservation benefits," Ecological Economics, Elsevier, vol. 65(4), pages 822-833, May.
    13. Sandhu, Harpinder S. & Crossman, Neville D. & Smith, F. Patrick, 2012. "Ecosystem services and Australian agricultural enterprises," Ecological Economics, Elsevier, vol. 74(C), pages 19-26.
    14. Cacho, Oscar J. & Lipper, Leslie & Moss, Jonathan, 2013. "Transaction costs of carbon offset projects: A comparative study," Ecological Economics, Elsevier, vol. 88(C), pages 232-243.
    15. Erqi Xu & Hongqi Zhang & Yang Yang & Ying Zhang, 2014. "Integrating a Spatially Explicit Tradeoff Analysis for Sustainable Land Use Optimal Allocation," Sustainability, MDPI, Open Access Journal, vol. 6(12), pages 1-22, December.
    16. John Antle & Stephen Ogle, 2012. "Influence of soil C, N 2 O and fuel use on GHG mitigation with no-till adoption," Climatic Change, Springer, vol. 111(3), pages 609-625, April.
    17. Moon, Wanki & Griffith, Jacob Wayne, 2011. "Assessing holistic economic value for multifunctional agriculture in the US," Food Policy, Elsevier, vol. 36(4), pages 455-465, August.
    18. Sonja S. Teelucksingh & Paulo A.L.D. Nunes, 2010. "Biodiversity Valuation in Developing Countries: A Focus on Small Island Developing States (SIDS)," Working Papers 2010.111, Fondazione Eni Enrico Mattei.
    19. Catherine L. Kling & Raymond W. Arritt & Gray Calhoun & David A. Keiser & et al., 2016. "Research Needs and Challenges in the FEW System: Coupling Economic Models with Agronomic, Hydrologic, and Bioenergy Models for Sustainable Food, Energy, and Water Systems," Center for Agricultural and Rural Development (CARD) Publications 16-wp563, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    20. Lal, R., 2011. "Sequestering carbon in soils of agro-ecosystems," Food Policy, Elsevier, vol. 36(S1), pages 33-39.
    21. Nordblom, Thomas L. & Hume, Iain H. & Bathgate, Andrew D. & Reynolds, Michael, 2006. "Mathematical optimisation of drainage and economic land use for target water and salt yields," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 50(3), September.

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