IDEAS home Printed from https://ideas.repec.org/a/eee/ecoser/v56y2022ics2212041622000389.html
   My bibliography  Save this article

Developing a conceptual model to quantify eco-compensation based on environmental and economic cost-benefit analysis for promoting the ecologically intensified agriculture

Author

Listed:
  • Zhen, Huayang
  • Qiao, Yuhui
  • Zhao, Haijun
  • Ju, Xuehai
  • Zanoli, Raffaele
  • Waqas, Muhammad Ahmed
  • Lun, Fei
  • Knudsen, Marie Trydeman

Abstract

Eco-compensation is essential for promoting ecologically intensive agriculture to reduce the environmental impact of the agricultural sector. However, a comprehensive and performance-based tool to quantify eco-compensation is not yet available. Here, we present a comprehensive model of eco-compensation standards based on internal and external trade-offs (ESBIET) and their valuation methods based on farm-level cost-benefit analysis. We calculated the internal economic costs and benefits using conventional life cycle costing and profit analysis. The ecosystem service and disservice values were recorded as external benefits and costs, which were valued using the revealed preference approach and the Environmental Priorities Strategies model, respectively. We incorporated the Coase theorem and Pigou theory into this model to quantify government compensation, which complements market compensation. The ESBIET model was tested using a case study of greenhouse vegetable production in eight conventional (CON), eight organic (ORG), and seven community-supported agriculture (CSA) greenhouse vegetable production farms. This article also described the key features, potential users and future opportunities for improving our ESBITE model. At its core, the ESBIET model can be effectively used to design eco-compensation measures to promote ecologically intensified agriculture.

Suggested Citation

  • Zhen, Huayang & Qiao, Yuhui & Zhao, Haijun & Ju, Xuehai & Zanoli, Raffaele & Waqas, Muhammad Ahmed & Lun, Fei & Knudsen, Marie Trydeman, 2022. "Developing a conceptual model to quantify eco-compensation based on environmental and economic cost-benefit analysis for promoting the ecologically intensified agriculture," Ecosystem Services, Elsevier, vol. 56(C).
    • Handle: RePEc:eee:ecoser:v:56:y:2022:i:c:s2212041622000389
    DOI: 10.1016/j.ecoser.2022.101442
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S2212041622000389
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ecoser.2022.101442?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Anita Wreford & Ada Ignaciuk & Guillaume Gruère, 2017. "Overcoming barriers to the adoption of climate-friendly practices in agriculture," OECD Food, Agriculture and Fisheries Papers 101, OECD Publishing.
    2. Nick Hanley & Robert Wright & Vic Adamowicz, 1998. "Using Choice Experiments to Value the Environment," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 11(3), pages 413-428, April.
    3. Lucile Muneret & Matthew Mitchell & Verena Seufert & Stéphanie Aviron & El Aziz Djoudi & Julien Pétillon & Manuel Plantegenest & Denis Thiéry & Adrien Rusch, 2018. "Evidence that organic farming promotes pest control," Nature Sustainability, Nature, vol. 1(7), pages 361-368, July.
    4. Ankamah-Yeboah, Isaac & Nielsen, Max & Nielsen, Rasmus, 2016. "Price premium of organic salmon in Danish retail sale," Ecological Economics, Elsevier, vol. 122(C), pages 54-60.
    5. De Leijster, Vincent & Santos, Maria João & Wassen, Martin J. & Ramos-Font, Maria Eugenia & Robles, Ana Belén & Díaz, Mario & Staal, Maartje & Verweij, Pita A., 2019. "Agroecological management improves ecosystem services in almond orchards within one year," Ecosystem Services, Elsevier, vol. 38(C), pages 1-1.
    6. Jeffrey Gillespie & Richard Nehring, 2013. "Comparing economic performance of organic and conventional U.S. beef farms using matching samples," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 57(2), pages 178-192, April.
    7. Liu, Moucheng & Yang, Lun & Min, Qingwen & Bai, Yangying, 2018. "Eco-compensation standards for agricultural water conservation: A case study of the paddy land-to-dry land program in China," Agricultural Water Management, Elsevier, vol. 204(C), pages 192-197.
    8. Fan, Fan & Henriksen, Christian Bugge & Porter, John, 2016. "Valuation of ecosystem services in organic cereal crop production systems with different management practices in relation to organic matter input," Ecosystem Services, Elsevier, vol. 22(PA), pages 117-127.
    9. Nurmi, Väinö & Ahtiainen, Heini, 2018. "Distributional Weights in Environmental Valuation and Cost-benefit Analysis: Theory and Practice," Ecological Economics, Elsevier, vol. 150(C), pages 217-228.
    10. Engel, Stefanie & Pagiola, Stefano & Wunder, Sven, 2008. "Designing payments for environmental services in theory and practice: An overview of the issues," Ecological Economics, Elsevier, vol. 65(4), pages 663-674, May.
    11. Smith, Helen F. & Sullivan, Caroline A., 2014. "Ecosystem services within agricultural landscapes—Farmers' perceptions," Ecological Economics, Elsevier, vol. 98(C), pages 72-80.
    12. Costanza, Robert & de Groot, Rudolf & Braat, Leon & Kubiszewski, Ida & Fioramonti, Lorenzo & Sutton, Paul & Farber, Steve & Grasso, Monica, 2017. "Twenty years of ecosystem services: How far have we come and how far do we still need to go?," Ecosystem Services, Elsevier, vol. 28(PA), pages 1-16.
    13. B. Delworth Gardner, 1977. "The Economics of Agricultural Land Preservation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 59(5), pages 1027-1036.
    14. Hatan, Shachar & Fleischer, Aliza & Tchetchik, Anat, 2021. "Economic valuation of cultural ecosystem services: The case of landscape aesthetics in the agritourism market," Ecological Economics, Elsevier, vol. 184(C).
    15. Rosa-Schleich, Julia & Loos, Jacqueline & Mußhoff, Oliver & Tscharntke, Teja, 2019. "Ecological-economic trade-offs of Diversified Farming Systems – A review," Ecological Economics, Elsevier, vol. 160(C), pages 251-263.
    16. Jules Pretty & Tim G. Benton & Zareen Pervez Bharucha & Lynn V. Dicks & Cornelia Butler Flora & H. Charles J. Godfray & Dave Goulson & Sue Hartley & Nic Lampkin & Carol Morris & Gary Pierzynski & P. V, 2018. "Global assessment of agricultural system redesign for sustainable intensification," Nature Sustainability, Nature, vol. 1(8), pages 441-446, August.
    17. Verena Seufert & Navin Ramankutty & Jonathan A. Foley, 2012. "Comparing the yields of organic and conventional agriculture," Nature, Nature, vol. 485(7397), pages 229-232, May.
    18. Zheng, Xinyi & Zhang, Junze & Cao, Shixiong, 2018. "Net value of grassland ecosystem services in mainland China," Land Use Policy, Elsevier, vol. 79(C), pages 94-101.
    19. Chang, Jie & Wu, Xu & Liu, Anqin & Wang, Yan & Xu, Bin & Yang, Wu & Meyerson, Laura A. & Gu, Baojing & Peng, Changhui & Ge, Ying, 2011. "Assessment of net ecosystem services of plastic greenhouse vegetable cultivation in China," Ecological Economics, Elsevier, vol. 70(4), pages 740-748, February.
    20. Nguyen, Thu Lan Thi & Laratte, Bertrand & Guillaume, Bertrand & Hua, Anthony, 2016. "Quantifying environmental externalities with a view to internalizing them in the price of products, using different monetization models," Resources, Conservation & Recycling, Elsevier, vol. 109(C), pages 13-23.
    21. Diswandi, Diswandi, 2017. "A hybrid Coasean and Pigouvian approach to Payment for Ecosystem Services Program in West Lombok: Does it contribute to poverty alleviation?," Ecosystem Services, Elsevier, vol. 23(C), pages 138-145.
    22. Zhang, Wei & Ricketts, Taylor H. & Kremen, Claire & Carney, Karen & Swinton, Scott M., 2007. "Ecosystem services and dis-services to agriculture," Ecological Economics, Elsevier, vol. 64(2), pages 253-260, December.
    23. Gómez-Baggethun, Erik & Barton, David N., 2013. "Classifying and valuing ecosystem services for urban planning," Ecological Economics, Elsevier, vol. 86(C), pages 235-245.
    24. Torres-Miralles, M. & Grammatikopoulou, I. & Rescia, A.J., 2017. "Employing contingent and inferred valuation methods to evaluate the conservation of olive groves and associated ecosystem services in Andalusia (Spain)," Ecosystem Services, Elsevier, vol. 26(PA), pages 258-269.
    25. Zhen, Huayang & Gao, Wenzeng & Yuan, Kai & Ju, Xuehai & Qiao, Yuhui, 2021. "Internalizing externalities through net ecosystem service analysis–A case study of greenhouse vegetable farms in Beijing," Ecosystem Services, Elsevier, vol. 50(C).
    26. Claassen, Roger & Cattaneo, Andrea & Johansson, Robert, 2008. "Cost-effective design of agri-environmental payment programs: U.S. experience in theory and practice," Ecological Economics, Elsevier, vol. 65(4), pages 737-752, May.
    27. Gilhespy, Sarah L. & Anthony, Steven & Cardenas, Laura & Chadwick, David & del Prado, Agustin & Li, Changsheng & Misselbrook, Thomas & Rees, Robert M. & Salas, William & Sanz-Cobena, Alberto & Smith, , 2014. "First 20 years of DNDC (DeNitrification DeComposition): Model evolution," Ecological Modelling, Elsevier, vol. 292(C), pages 51-62.
    28. Pagiola, Stefano & Ramirez, Elias & Gobbi, Jose & de Haan, Cees & Ibrahim, Muhammad & Murgueitio, Enrique & Ruiz, Juan Pablo, 2007. "Paying for the environmental services of silvopastoral practices in Nicaragua," Ecological Economics, Elsevier, vol. 64(2), pages 374-385, December.
    29. Paul Ferraro & Toshihiro Uchida & Jon Conrad, 2005. "Price Premiums for Eco-friendly Commodities: Are ‘Green’ Markets the Best Way to Protect Endangered Ecosystems?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 32(3), pages 419-438, November.
    30. Liu, Moucheng & Liu, Weiwei & Yang, Lun & Jiao, Wenjun & He, Siyuan & Min, Qingwen, 2019. "A dynamic eco-compensation standard for Hani Rice Terraces System in southwest China," Ecosystem Services, Elsevier, vol. 36(C), pages 1-1.
    31. Stefano Orsini & Susanne Padel & Nic Lampkin, 2018. "Labour Use on Organic Farms: A Review of Research since 2000," Organic Farming, Librello publishing house, vol. 4(1), pages 7-15.
    32. Alcon, Francisco & Marín-Miñano, Cristina & Zabala, José A. & de-Miguel, María-Dolores & Martínez-Paz, José M., 2020. "Valuing diversification benefits through intercropping in Mediterranean agroecosystems: A choice experiment approach," Ecological Economics, Elsevier, vol. 171(C).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ying Wang & Shudong Zhou & Guanghui Jiang, 2023. "Can the Application of Environmentally Friendly Fertilisers Reduce Agricultural Labour Input? Empirical Evidence from Peanut Farmers in China," Sustainability, MDPI, vol. 15(4), pages 1-18, February.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zhen, Huayang & Gao, Wenzeng & Yuan, Kai & Ju, Xuehai & Qiao, Yuhui, 2021. "Internalizing externalities through net ecosystem service analysis–A case study of greenhouse vegetable farms in Beijing," Ecosystem Services, Elsevier, vol. 50(C).
    2. Dennis Junior Choruma & Oghenekaro Nelson Odume, 2019. "Exploring Farmers’ Management Practices and Values of Ecosystem Services in an Agroecosystem Context—A Case Study from the Eastern Cape, South Africa," Sustainability, MDPI, vol. 11(23), pages 1-22, November.
    3. Hua Li & Dan Su & Yu Cao & Jiayi Wang & Yu Cao, 2022. "Optimizing the Compensation Standard of Cultivated Land Protection Based on Ecosystem Services in the Hangzhou Bay Area, China," Sustainability, MDPI, vol. 14(4), pages 1-18, February.
    4. Nesar Ahmed & Shirley Thompson & Giovanni M. Turchini, 2020. "Organic aquaculture productivity, environmental sustainability, and food security: insights from organic agriculture," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 12(6), pages 1253-1267, December.
    5. Anna M. Hansson & Eja Pedersen & Niklas P. E. Karlsson & Stefan E. B. Weisner, 2023. "Barriers and drivers for sustainable business model innovation based on a radical farmland change scenario," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(8), pages 8083-8106, August.
    6. Dardonville, Manon & Legrand, Baptiste & Clivot, Hugues & Bernardin, Claire & Bockstaller, Christian & Therond, Olivier, 2022. "Assessment of ecosystem services and natural capital dynamics in agroecosystems," Ecosystem Services, Elsevier, vol. 54(C).
    7. Kubiszewski, Ida & Concollato, Luke & Costanza, Robert & Stern, David I., 2023. "Changes in authorship, networks, and research topics in ecosystem services," Ecosystem Services, Elsevier, vol. 59(C).
    8. Aguilera, Eduardo & Díaz-Gaona, Cipriano & García-Laureano, Raquel & Reyes-Palomo, Carolina & Guzmán, Gloria I. & Ortolani, Livia & Sánchez-Rodríguez, Manuel & Rodríguez-Estévez, Vicente, 2020. "Agroecology for adaptation to climate change and resource depletion in the Mediterranean region. A review," Agricultural Systems, Elsevier, vol. 181(C).
    9. Wunder, Sven & Engel, Stefanie & Pagiola, Stefano, 2008. "Taking stock: A comparative analysis of payments for environmental services programs in developed and developing countries," Ecological Economics, Elsevier, vol. 65(4), pages 834-852, May.
    10. Alcon, Francisco & Marín-Miñano, Cristina & Zabala, José A. & de-Miguel, María-Dolores & Martínez-Paz, José M., 2020. "Valuing diversification benefits through intercropping in Mediterranean agroecosystems: A choice experiment approach," Ecological Economics, Elsevier, vol. 171(C).
    11. Leander Raes & Nikolay Aguirre & Marijke D’Haese & Guido Huylenbroeck, 2014. "Analysis of the cost-effectiveness for ecosystem service provision and rural income generation: a comparison of three different programs in Southern Ecuador," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 16(3), pages 471-498, June.
    12. Jones, Sarah K. & Boundaogo, Mansour & DeClerck, Fabrice A. & Estrada-Carmona, Natalia & Mirumachi, Naho & Mulligan, Mark, 2019. "Insights into the importance of ecosystem services to human well-being in reservoir landscapes," Ecosystem Services, Elsevier, vol. 39(C).
    13. Valencia Torres, Angélica & Tiwari, Chetan & Atkinson, Samuel F., 2021. "Progress in ecosystem services research: A guide for scholars and practitioners," Ecosystem Services, Elsevier, vol. 49(C).
    14. Schomers, Sarah & Matzdorf, Bettina, 2013. "Payments for ecosystem services: A review and comparison of developing and industrialized countries," Ecosystem Services, Elsevier, vol. 6(C), pages 16-30.
    15. Phan, Thu-Ha Dang & Brouwer, Roy & Hoang, Long Phi & Davidson, Marc David, 2017. "A comparative study of transaction costs of payments for forest ecosystem services in Vietnam," Forest Policy and Economics, Elsevier, vol. 80(C), pages 141-149.
    16. Weituschat, Chiara Sophia & Pascucci, Stefano & Materia, Valentina Cristiana & Caracciolo, Francesco, 2023. "Can contract farming support sustainable intensification in agri-food value chains?," Ecological Economics, Elsevier, vol. 211(C).
    17. Cardona Santos, Elsa & Storm, Hugo & Rasch, Sebastian, 2021. "The cost-effectiveness of conservation auctions in the presence of asset specificity: An agent-based model," Land Use Policy, Elsevier, vol. 102(C).
    18. Giannetti, B.F. & Ogura, Y. & Bonilla, S.H. & Almeida, C.M.V.B., 2011. "Emergy assessment of a coffee farm in Brazilian Cerrado considering in a broad form the environmental services, negative externalities and fair price," Agricultural Systems, Elsevier, vol. 104(9), pages 679-688.
    19. Smith, Helen F. & Sullivan, Caroline A., 2014. "Ecosystem services within agricultural landscapes—Farmers' perceptions," Ecological Economics, Elsevier, vol. 98(C), pages 72-80.
    20. Makovníková Jarmila & Pálka Boris & Kološta Stanislav & Flaška Filip & Orságová Katarína & Spišiaková Mária, 2020. "Non-Monetary Assessment and Mapping of the Potential of Agroecosystem Services in Rural Slovakia," European Countryside, Sciendo, vol. 12(2), pages 257-276, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ecoser:v:56:y:2022:i:c:s2212041622000389. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/ecosystem-services .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.