IDEAS home Printed from https://ideas.repec.org/a/ags/joaaec/43416.html
   My bibliography  Save this article

Pricing Benefit Externalities of Soil Carbon Sequestration in Multifunctional Agriculture

Author

Listed:
  • Hartell, Jason G.

Abstract

“Multifunctionality” emphasizes the benefit externality properties of nonfood products that coincide with agricultural commodity production, some of which also have public-good properties. However, determining the willingness to pay for local benefit externalities is seen as necessary but daunting. This paper pursues the idea that the valuation process might first start by estimating the incentives required to supply various levels of a benefit externality. With the use of carbon sequestration through the adoption of no-till cultivation as an example of a multifunctional benefit externality, mathematical programming is used to derive representative price schedules. The implication for incentive prices are examined in light of risk aversion.

Suggested Citation

  • Hartell, Jason G., 2004. "Pricing Benefit Externalities of Soil Carbon Sequestration in Multifunctional Agriculture," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 36(2), pages 1-15, August.
  • Handle: RePEc:ags:joaaec:43416
    DOI: 10.22004/ag.econ.43416
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/43416/files/Hartell2%20JAAE%20August%202004.pdf
    Download Restriction: no

    File URL: https://libkey.io/10.22004/ag.econ.43416?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
    ---><---

    References listed on IDEAS

    as
    1. Antle, John M. & Capalbo, Susan Marie & Mooney, Sian & Elliott, Edward T. & Paustian, Keith H., 2001. "Economic Analysis Of Agricultural Soil Carbon Sequestration: An Integrated Assessment Approach," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 26(2), pages 1-24, December.
    2. Upadhyay, Bharat Mani & Young, Douglas L., 2003. "An Operational Approach For Evaluating Investment Risk: An Application To The No-Till Transition," 2003 Annual Meeting, July 13-16, 2003, Denver, Colorado 35992, Western Agricultural Economics Association.
    3. Hellwinckel, Chad M. & Larson, James A. & Torre Ugarte, Daniel de la, 2003. "Incentives For Switching Agricultural Land To Carbon Sequestering No-Tillage: What Duration Are Incentives Necessary?," 2003 Annual Meeting, February 1-5, 2003, Mobile, Alabama 35219, Southern Agricultural Economics Association.
    4. Dismukes, Robert & Allen, P. Geoffrey & Morzuch, Bernard J., 1989. "Participation In Multiple-Peril Crop Insurance: Risk Assessments And Risk Preferences Of Cranberry Growers," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 18(2), pages 1-9, October.
    5. JunJie Wu & Bruce A. Babcock, 1996. "Contract Design for the Purchase of Environmental Goods from Agriculture," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(4), pages 935-945.
    6. Goodhue, Rachael E. & Gruere, Guillaume P. & Klonsky, Karen, 2002. "Public Preferences, Pressure Groups, And Public Policy Regarding Multifunctionality In Agriculture: Compatibility And Conflict," 2002 Annual meeting, July 28-31, Long Beach, CA 19595, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    7. Buzby, Jean & Kenkel, Phil L. & Skees, Jerry R. & Pease, James W. & Benson, Fred J., 1990. "A Comparison of Subjective and Historical Yield Distributions With Implications For Multiple Peril Crop Insurance," 1990 Annual meeting, August 5-8, Vancouver, Canada 270874, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    8. John Lee & Deborah J. Brown & Stephen Lovejoy, 1985. "Stochastic Efficiency versus Mean-Variance Criteria as Predictors of Adoption of Reduced Tillage," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 67(4), pages 839-845.
    9. Alan Randall, 2002. "Valuing the outputs of multifunctional agriculture," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 29(3), pages 289-307, July.
    10. Atance Muniz, Ignacio & Bardaji, Isabel & Tio, Carlos, 2002. "Intervention in Agricultural Systems that Provide Positive Environmental Externalities: an Evaluation of Alternative Instruments," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain 24810, European Association of Agricultural Economists.
    11. Uwe A. Schneider, 2002. "Cost of Agricultural Carbon Savings, The," Center for Agricultural and Rural Development (CARD) Publications 02-wp306, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    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. Akpalu, Wisdom & Anders, Ekbom, 2010. "The Bioeconomics of Conservation Agriculture and Soil Carbon Sequestration in Developing Countries," RFF Working Paper Series dp-10-07-efd, Resources for the Future.

    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. Mireille Chiroleu-Assouline & Sébastien Roussel, 2010. "Contract Design to Sequester Carbon in Agricultural Soils," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00505137, HAL.
    2. Qiuzhen Chen & Timo Sipiläinen & John Sumelius, 2014. "Assessment of Agri-Environmental Externalities at Regional Levels in Finland," Sustainability, MDPI, vol. 6(6), pages 1-21, May.
    3. Michael A. Arnold & Joshua M. Duke & Kent D. Messer, 2013. "Adverse Selection in Reverse Auctions for Ecosystem Services," Land Economics, University of Wisconsin Press, vol. 89(3), pages 387-412.
    4. Rob Fraser, 2009. "Land Heterogeneity, Agricultural Income Forgone and Environmental Benefit: An Assessment of Incentive Compatibility Problems in Environmental Stewardship Schemes," Journal of Agricultural Economics, Wiley Blackwell, vol. 60(1), pages 190-201, February.
    5. Charles Palmer & Markus Ohndorf & Ian A. MacKenzie, 2009. "Life’s a breach! Ensuring ‘permanence’ in forest carbon sinks under incomplete contract enforcement," CER-ETH Economics working paper series 09/113, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich.
    6. Emmanuelle Quillérou & Rob Fraser, 2010. "Adverse Selection in the Environmental Stewardship Scheme: Does the Higher Level Stewardship Scheme Design Reduce Adverse Selection?," Journal of Agricultural Economics, Wiley Blackwell, vol. 61(2), pages 369-380, June.
    7. Uwe A. Schneider & Bruce A. McCarl, 2003. "Measuring Abatement Potentials When Multiple Change Is Present: The Case Of Greenhouse Gas Mitigation In U.S. Agriculture And Forestry," Working Papers FNU-23, Research unit Sustainability and Global Change, Hamburg University, revised Apr 2002.
    8. Lee, Hyunok & Blank, Steven C., 2004. "A Statistical Profile of Horticultural Crop Farm Industries in California," Research Reports 11931, University of California, Davis, Giannini Foundation.
    9. Na Li Dawson & Kathleen Segerson, 2008. "Voluntary Agreements with Industries: Participation Incentives with Industry-Wide Targets," Land Economics, University of Wisconsin Press, vol. 84(1), pages 97-114.
    10. Segerson, Kathleen & Wu, JunJie, 2006. "Nonpoint pollution control: Inducing first-best outcomes through the use of threats," Journal of Environmental Economics and Management, Elsevier, vol. 51(2), pages 165-184, March.
    11. Turpin, Nadine & Bontems, Philippe & Rotillon, Gilles, 2004. "Lutte contre la pollution diffuse sur un bassin d’élevage : comparaison d’instruments de régulation en présence d’asymétrie d’information," Cahiers d'Economie et de Sociologie Rurales (CESR), Institut National de la Recherche Agronomique (INRA), vol. 72.
    12. John Antle & Stephen Ogle, 2012. "Influence of soil C, N 2 O and fuel use on GHG mitigation with no-till adoption," Climatic Change, Springer, vol. 111(3), pages 609-625, April.
    13. Odera, Michael M. & Kimani, Stephen K., 2004. "Payments for Environmental Services under Emerging International Agreements: A Basis for Inclusion of Agricultural Soil Carbon Sinks," 2004 Inaugural Symposium, December 6-8, 2004, Nairobi, Kenya 9539, African Association of Agricultural Economists (AAAE).
    14. White, Benedict & Raguragavan, Jananee & Chambers, Robert G., 2007. "Agri-environmental Regulation on the Back of a Data Envelopment Analysis," 81st Annual Conference, April 2-4, 2007, Reading University, UK 7963, Agricultural Economics Society.
    15. Blank, Steven C., 2010. "Economic Sustainability in the Evolving World: Implications for American Agriculture and Economists," Western Economics Forum, Western Agricultural Economics Association, vol. 9(01), pages 1-8.
    16. Dupraz, Pierre & Latouche, Karine & Turpin, Nadine, 2007. "Programmes agri-environnementaux en présence d’effets de seuil," Cahiers d'Economie et de Sociologie Rurales (CESR), Institut National de la Recherche Agronomique (INRA), vol. 82.
    17. Tas Thamo & David J. Pannell & Marit E. Kragt & Michael J. Robertson & Maksym Polyakov, 2017. "Dynamics and the economics of carbon sequestration: common oversights and their implications," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 22(7), pages 1095-1111, October.
    18. Carmen Arguedas & Daan Soest, 2011. "Optimal Conservation Programs, Asymmetric Information and the Role of Fixed Costs," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 50(2), pages 305-323, October.
    19. Gulati, Sumeet & Vercammen, James, 2005. "The Optimal Length of an Agricultural Carbon Contract," Working Papers 37027, University of Victoria, Resource Economics and Policy.
    20. Kallas, Z. & Gómez-Limón, J.A., 2007. "Valoración De La Multifuncionalidad Agraria: Una Aplicación A Través Del Método De Los Experimentos De Elección/Agricultural Multifunctionality Valuation: A Case Study Using The Choice Experiment," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 25, pages 107-144, Abril.

    More about this item

    Statistics

    Access and download statistics

    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:ags:joaaec:43416. 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: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/saeaaea.html .

    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.