RT Journal Article
SR Electronic
T1 Ecosystem Services under Benefit and Cost Uncertainty: An Application to Soil Carbon Sequestration
JF Land Economics
JO Land Econ
FD University of Wisconsin Press
SP 668
OP 686
DO 10.3368/le.86.4.668
VO 86
IS 4
A1 Sergey S. Rabotyagov
YR 2010
UL http://le.uwpress.org/content/86/4/668.abstract
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)