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The Value of the Reservoir Services Gained with Soil Conservation

Author

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  • LeRoy Hansen
  • Daniel Hellerstein

Abstract

To evaluate the impact of soil conservation on reservoir services, we extend replacement cost theory to cases where reservoir benefits are restored or preserved for multiple years. The framework is used to value the effect that a marginal change in soil erosion has on current and future reservoir benefits. Results show that, across the 2,111 U.S watersheds, a one-ton reduction in soil erosion provides benefits ranging from zero to $1.38. Furthermore, in a policy application, the lower soil erosion level in 1997, relative to 1982, was shown to have conserved $154 million in reservoir benefits.

Suggested Citation

  • LeRoy Hansen & Daniel Hellerstein, 2007. "The Value of the Reservoir Services Gained with Soil Conservation," Land Economics, University of Wisconsin Press, vol. 83(3), pages 285-301.
  • Handle: RePEc:uwp:landec:v:83:y:2007:i:3:p:285-301
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    References listed on IDEAS

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    1. Ribaudo, Marc O. & Hellerstein, Daniel, 1992. "Estimating Water Quality Benefits: Theoretical and Methodological Issues," Technical Bulletins 157031, United States Department of Agriculture, Economic Research Service.
    2. R. K. Perrin, 1972. "Asset Replacement Principles," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 54(1), pages 60-67.
    3. Claassen, Roger & Hansen, LeRoy T. & Peters, Mark & Breneman, Vincent E. & Weinberg, Marca & Cattaneo, Andrea & Feather, Peter & Gadsby, Dwight M. & Hellerstein, Daniel & Hopkins, Jeffrey W. & Johnsto, 2001. "Agri-Environmental Policy at the Crossroads: Guideposts on a Changing Landscape," Agricultural Economics Reports 33983, United States Department of Agriculture, Economic Research Service.
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    Cited by:

    1. Chavez, Holcer & Nadolnyak, Denis A. & Saravia, Miguel, 2013. "Socioeconomic and Environmental Impact of Development Interventions: Rice Production at the Gallito Ciego Reservoir in Peru," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IFAMA), vol. 16(1).
    2. Deepa Pradhan & Tihomir Ancev & Ross Drynan & Michael Harris, 2011. "Management of Water Reservoirs (Embungs) in West Timor, Indonesia," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 25(1), pages 339-356, January.
    3. Tran, Ngoc Bich & Ley, Eduardo, 2012. "Green prices," Policy Research Working Paper Series 6131, The World Bank.
    4. Hansen, LeRoy & Ribaudo, Marc, 2008. "Economic Measures of Soil Conservation Benefits: Regional Values for Policy Assessment," Technical Bulletins 184312, United States Department of Agriculture, Economic Research Service.

    More about this item

    JEL classification:

    • Q26 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Recreational Aspects of Natural Resources
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects

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