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

  • Sergey S. Rabotyagov
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    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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    Article provided by University of Wisconsin Press in its journal Land Economics.

    Volume (Year): 86 (2010)
    Issue (Month): 4 ()
    Pages: 668-686

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    Handle: RePEc:uwp:landec:v:86:y:2010:iv:1:p:668-686
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