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Ecosystem Services under Benefit and Cost Uncertainty: An Application to Soil Carbon Sequestration
- Land Economics
- University of Wisconsin Press
- Volume 86, Number 4, November 2010
- pp. 668-686
- Article
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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.