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Privatizing Ecosystem Services: Water Quality Effects from a Carbon Market

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  • Kling, Catherine L.

Abstract

With the specter of a new farm bill on the horizon, considerable discussion is occurring concerning the possible redirection of conservation programming and financing. Notably, interest in the increased use of incentive systems and market-like instruments continues to expand. One source of this interest lies in the desire to shift some of the burden of providing ecosystem services, such as protecting stream and river channels from erosion, maintaining biodiversity, and providing clean water and air, to private sector pockets. For example, in the fall of 2006, USDA and EPA announced a joint partnership to support expanded water quality credit trading for nutrients in the Chesapeake Bay watershed, allowing farmers to receive compensation for water quality improvements. Carbon markets, such as the active program in the European Union, are also being discussed as a possible model for expanded market-like programs in agricultural conservation policy.
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Suggested Citation

  • Kling, Catherine L., 2008. "Privatizing Ecosystem Services: Water Quality Effects from a Carbon Market," Staff General Research Papers Archive 12888, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genres:12888
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