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Ecosystem Services under Benefit and Cost Uncertainty: An Application to Soil Carbon Sequestration

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  • Sergey S. Rabotyagov

Abstract

Benefit and cost uncertainty in provisioning of ecosystem services are investigated in the context of soil carbon sequestration. Multiple parcel-level carbon sequestration options are considered. Uncertainty has been a widely stated reason for not including soil carbon sequestration in the portfolio of greenhouse gases reduction measures. Biophysical simulation models are used to generate a distribution of resulting environmental benefits. An econometric model of conservation practice adoption is used to generate a distribution of costs. The results provide a magnitude of uncertainty discount for soil carbon offsets and the budget margin of safety, and may assist in formulating carbon sequestration policy.

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  • Sergey S. Rabotyagov, 2010. "Ecosystem Services under Benefit and Cost Uncertainty: An Application to Soil Carbon Sequestration," Land Economics, University of Wisconsin Press, vol. 86(4), pages 668-686.
    • Handle: RePEc:uwp:landec:v:86:y:2010:iv:1:p:668-686
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    Cited by:

    1. Sergey S. Rabotyagov & Adriana M. Valcu-Lisman & Catherine L. Kling, 2016. "Resilient Provision of Ecosystem Services from Agricultural Landscapes: Trade-offs Involving Means and Variances of Water Quality Improvements," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 98(5), pages 1295-1313.
    2. Rabotyagov, Sergey S. & Valcu, Adriana M. & Campbell, Todd D. & Jha, Manoj K. & Gassman, Philip W. & Kling, Catherine L., 2012. "Using a coupled simulation-optimization approach to design cost-effective reverse auctions for watershed nutrient reductions," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124656, Agricultural and Applied Economics Association.
    3. Sergey S. Rabotyagov & Manoj Jha & Todd D. Campbell, 2010. "Nonpoint-Source Pollution Reduction for an Iowa Watershed: An Application of Evolutionary Algorithms," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 58(s1), pages 411-431, December.
    4. Zhen, Chen & Zheng, Xiaoyong, 2015. "Measuring the Informational Value of Interpretive Shelf Nutrition Labels to Shoppers," 2016 Allied Social Sciences Association (ASSA) Annual Meeting, January 3-5, 2016, San Francisco, California 212812, Agricultural and Applied Economics Association.
    5. Susan Stratton Sayre, 2019. "Pay for the Option to Pay? The Impact of Improved Scientific Information on Payments for Ecosystem Services," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 73(2), pages 591-625, June.
    6. Springborn, Michael & Yeo, Boon-Ling & Lee, Juhwan & Six, Johan, 2013. "Crediting uncertain ecosystem services in a market," Journal of Environmental Economics and Management, Elsevier, vol. 66(3), pages 554-572.

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    More about this item

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • Q24 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Land

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