Ecosystem services from agriculture: Steps for expanding markets
Farmers in the United States produce a wide variety of commodities for food and fiber. Farmers can also produce a variety of non-commodity ecosystem services for which markets do not exist or are imperfectly formed. Such services may be valued by society, but due to their nature or institutional arrangements, farmers often do not receive a price signal for them. This results in inefficient allocations of resources, in that farmers under-produce non-commodity ecosystem services. One possible way to increase private investment in ecosystem services is to create a market for them. We draw lessons from six different markets for providing ecosystem services from farms (water quality trading, wetland mitigation, carbon cap-and-trade, over-the-counter carbon, eco-labeling, and fee hunting) on what is required for a market to function, and the problems these markets might face.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
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.:
- John M. Antle, 1999. "The New Economics of Agriculture," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(5), pages 993-1010.
- Sandhu, Harpinder S. & Wratten, Stephen D. & Cullen, Ross & Case, Brad, 2008. "The future of farming: The value of ecosystem services in conventional and organic arable land. An experimental approach," Ecological Economics, Elsevier, vol. 64(4), pages 835-848, February.
- Brown, Dennis M. & Reeder, Richard J., 2007. "Farm-Based Recreation: A Statistical Profile," Economic Research Report 56445, United States Department of Agriculture, Economic Research Service.
- Stavins, Robert N., 2005. "Lessons Learned from SO2 Allowance Trading," Choices, Agricultural and Applied Economics Association, vol. 20(1).
- Abler, David G. & Shortle, James S., 1991. "The Political Economy Of Water Quality Protection From Agricultural Chemicals," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 20(1), April.
- Bohm, Peter & Russell, Clifford S., 1985. "Comparative analysis of alternative policy instruments," Handbook of Natural Resource and Energy Economics, in: A. V. Kneese† & J. L. Sweeney (ed.), Handbook of Natural Resource and Energy Economics, edition 1, volume 1, chapter 10, pages 395-460 Elsevier.
- Matthew J. Kotchen, 2006.
"Green Markets and Private Provision of Public Goods,"
Journal of Political Economy,
University of Chicago Press, vol. 114(4), pages 816-845, August.
- Matthew J. Kotchen, 2003. "Green Markets and Private Provision of Public Goods," Department of Economics Working Papers 2003-05, Department of Economics, Williams College.
- 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.
- de Groot, Rudolf S. & Wilson, Matthew A. & Boumans, Roelof M. J., 2002. "A typology for the classification, description and valuation of ecosystem functions, goods and services," Ecological Economics, Elsevier, vol. 41(3), pages 393-408, June.
- Murtough, Greg & Aretino, Barbara & Matysek, Anna, 2002. "Creating Markets for Ecosystem Services," Staff Research Papers 31912, Productivity Commission.
- Ribaudo, Marc, 2009. "Agriculture and Water Quality Trading: Exploring the Possibilities," Amber Waves, United States Department of Agriculture, Economic Research Service, March.
- Zeuli, Kimberly A. & Skees, Jerry R., 2000. "Will Southern Agriculture Play A Role In A Carbon Market?," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 32(02), August.
- Greg Murtough & Barbara Aretino & Anna Matysek, 2002. "Creating markets for ecosystem services," Urban/Regional 0207001, EconWPA.
- Zeuli, Kimberly A. & Skees, Jerry R., 2000. "Will Southern Agriculture Play a Role in a Carbon Market?," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 32(02), pages 235-248, August.
- Ribaudo, Marc & Hansen, LeRoy T. & Hellerstein, Daniel & Greene, Catherine R., 2008. "The Use of Markets To Increase Private Investment in Environmental Stewardship," Economic Research Report 56473, United States Department of Agriculture, Economic Research Service.
When requesting a correction, please mention this item's handle: RePEc:eee:ecolec:v:69:y:2010:i:11:p:2085-2092. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.