The Value of the Reservoir Services Gained with Soil Conservation
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.
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- 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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33586, United States Department of Agriculture, Economic Research Service.
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- 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.
- R. K. Perrin, 1972. "Asset Replacement Principles," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 54(1), pages 60-67.
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