PT  - JOURNAL ARTICLE
AU  - Rabotyagov, Sergey S.
TI  - Ecosystem Services under Benefit and Cost Uncertainty: An Application to Soil Carbon Sequestration
AID  - 10.3368/le.86.4.668
DP  - 2010 Nov 01
TA  - Land Economics
PG  - 668--686
VI  - 86
IP  - 4
4099  - http://le.uwpress.org/content/86/4/668.short
4100  - http://le.uwpress.org/content/86/4/668.full
SO  - Land Econ2010 Nov 01; 86
AB  - 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. (JEL D81, Q24)