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Institutions and the Value of Nonpoint Source Measurement Technology: Carbon Sequestration in Agricultural Soils

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  • Kurkalova, Lyubov A.
  • Kling, Catherine L.
  • Zhao, Jinhua

Abstract

The development of technologies for accurate field-scale carbon assessment allows the implementation of more efficient policies than can be implemented in their absence. We estimate the value of accurate measurement technology by estimating the gains from implementing a more efficient policy, one that targets carbon reductions at the field scale but requires accurate field-scale measurement technology, relative to a practice-based policy that can be implemented in the absence of such technology. We find large cost savings due to improved targeting of conservation tillage subsidies for the state of Iowa. The cost savings depend significantly on the choice of baseline carbon, while the ability of the government to cost discriminate has little impact on the value of accurate measurement technology.

Suggested Citation

  • Kurkalova, Lyubov A. & Kling, Catherine L. & Zhao, Jinhua, 2003. "Institutions and the Value of Nonpoint Source Measurement Technology: Carbon Sequestration in Agricultural Soils," Staff General Research Papers Archive 10676, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genres:10676
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    1. Lyubov Kurkalova & Catherine Kling & Jinhua Zhao, 2006. "Green Subsidies in Agriculture: Estimating the Adoption Costs of Conservation Tillage from Observed Behavior," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 54(2), pages 247-267, June.
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    3. GR Pautsch & LA Kurkalova & BA Babcock & CL Kling, 2001. "The Efficiency Of Sequestering Carbon In Agricultural Soils," Contemporary Economic Policy, Western Economic Association International, vol. 19(2), pages 123-134, April.
    4. Mooney, Sian & Antle, John M. & Capalbo, Susan Marie & Paustian, Keith H., 2002. "Contracting For Soil Carbon Credits: Design And Costs Of Measurement And Monitoring," 2002 Annual meeting, July 28-31, Long Beach, CA 19616, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    5. Antle, John & Capalbo, Susan & Mooney, Sian & Elliott, Edward & Paustian, Keith, 2003. "Spatial heterogeneity, contract design, and the efficiency of carbon sequestration policies for agriculture," Journal of Environmental Economics and Management, Elsevier, vol. 46(2), pages 231-250, September.
    6. Baumol,William J. & Oates,Wallace E., 1988. "The Theory of Environmental Policy," Cambridge Books, Cambridge University Press, number 9780521311120.
    7. Antle, John M. & Capalbo, Susan Marie & Mooney, Sian, 2002. "Farming The Environment Spatial Variation and Economic Effiiciency in Soil, Developing Policies for Carbon Sequestration and Agriculture," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 17(3), pages 1-2.
    8. Hongli Feng & Jinhua Zhao & Catherine L. Kling, 2000. "Towards Implementing Carbon Markets in Agriculture," Center for Agricultural and Rural Development (CARD) Publications 00-wp261, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    9. Peter J. Parks & Ian W. Hardie, 1995. "Least-Cost Forest Carbon Reserves: Cost-Effective Subsidies to Convert Marginal Agricultural Land to Forests," Land Economics, University of Wisconsin Press, vol. 71(1), pages 122-136.
    10. Baumol,William J. & Oates,Wallace E., 1988. "The Theory of Environmental Policy," Cambridge Books, Cambridge University Press, number 9780521322249.
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