Bioeconomic modelling of woody regrowth carbon offset options in productive grazing systems

2016 ◽  
Vol 38 (3) ◽  
pp. 307 ◽  
Author(s):  
Rebecca Gowen ◽  
Steven G. Bray
Keyword(s):  
Net Present Value ◽  
Agricultural Land ◽  
Carbon Price ◽  
Careful Consideration ◽  
Gross Margin ◽  
Grazing Land ◽  
Trade Offs ◽  
Bioeconomic Modelling ◽  
Key Variables ◽  
Relative Profitability

Agricultural land has been identified as a potential source of greenhouse gas emissions offsets through biosequestration in vegetation and soil. In the extensive grazing land of Australia, landholders may participate in the Australian Government’s Emissions Reduction Fund and create offsets by reducing woody vegetation clearing and allowing native woody plant regrowth to grow. This study used bioeconomic modelling to evaluate the trade-offs between an existing central Queensland grazing operation, which has been using repeated tree clearing to maintain pasture growth, and an alternative carbon and grazing enterprise in which tree clearing is reduced and the additional carbon sequestered in trees is sold. The results showed that ceasing clearing in favour of producing offsets produces a higher net present value over 20 years than the existing cattle enterprise at carbon prices, which are close to current (2015) market levels (~$13 t–1 CO2-e). However, by modifying key variables, relative profitability did change. Sensitivity analysis evaluated key variables, which determine the relative profitability of carbon and cattle. In order of importance these were: the carbon price, the gross margin of cattle production, the severity of the tree–grass relationship, the area of regrowth retained, the age of regrowth at the start of the project, and to a lesser extent the cost of carbon project administration, compliance and monitoring. Based on the analysis, retaining regrowth to generate carbon income may be worthwhile for cattle producers in Australia, but careful consideration needs to be given to the opportunity cost of reduced cattle income.

scholarly journals Demand for provisioning ecosystem services as a driver of change in the Canadian boreal zone1

2019 ◽  
Vol 27 (2) ◽  
pp. 166-184 ◽  
Author(s):  
Maitane Erdozain ◽  
Erika C. Freeman ◽  
Camille Ouellet Dallaire ◽  
Sonja Teichert ◽  
Harry W. Nelson ◽  
...  
Keyword(s):  
Climate Change ◽  
Ecosystem Services ◽  
Cumulative Effect ◽  
Careful Consideration ◽  
Wood Products ◽  
Boreal Zone ◽  
Drivers Of Change ◽  
Trade Offs ◽  
Provisioning Ecosystem Services ◽  
The Future

The Canadian boreal zone provides extractive goods and services (provisioning ecosystem services (PrES)) to domestic and global markets and makes a significant contribution to the Canadian economy. The intensity and location of these extractive activities, however, may positively or negatively affect the availability of other benefits that the Canadian and global society receive from the boreal. Where PrES compete, managing these activities along with their impacts to boreal ecosystems becomes a balancing act between the need for resource extraction and the continued availability of the other benefits from ecosystems. Management measures and policies are more likely to succeed if they are designed with foresight, which means accounting for how demand, a key driver of change in the boreal, may change in the future. To help this process, we present three divergent, yet plausible future scenarios based on the analysis of: (i) the capacity of the boreal to provide wood products, fossil fuels, metals and minerals, and hydropower and other renewables; (ii) past trends (1985–2015) and key events in the demand for these PrES; (iii) the interaction of demand for PrES with other drivers of change to the boreal zone; and (iv) the synergies and trade-offs between PrES. We find that historically and currently the capacity of the boreal to provide these PrES exceeds the amount currently supplied. However, the capacity of different PrES and location of extractive activities are spatially dispersed creating a spatial and temporal patchwork of associated risks to local ecosystem integrity and the supply of non-PrES. In addition, these scenarios suggest that the future of boreal PrES is very uncertain and highly dependent on how other drivers of change (namely governance and geopolitics, societal values and climate change) play out in the future. Given the spatial complexity, we find that the cumulative effect of these drivers (e.g., climate change) will determine what paths unfold for different areas of the boreal, and we conclude that careful consideration and planning must be given to ensure that the balance between PrES and non-PrES is maintained.

scholarly journals Estimation of the Value of Ecosystem Carbon Sequestration Services under Different Scenarios in the Central China (the Qinling-Daba Mountain Area)

2019 ◽  
Vol 12 (1) ◽  
pp. 337 ◽  
Author(s):  
Yuyang Yu ◽  
Jing Li ◽  
Zixiang Zhou ◽  
Li Zeng ◽  
Cheng Zhang
Keyword(s):  
Carbon Sequestration ◽  
Organic Carbon ◽  
Soil Organic Carbon ◽  
Soil Carbon ◽  
Carbon Storage ◽  
Discount Rate ◽  
Net Present Value ◽  
Carbon Price ◽  
Present Value ◽  
Mountain Area

The Qinling-Daba Mountain area is a transitional zone between north and south China and not much is known about its carbon storage, particularly its pool of soil organic carbon (SOC). Given this shortcoming, more reliable information regarding its SOC is needed. In light of this, we quantified above and below-ground carbon sinks using both the Carnegie-Ames-Stanford approach (CASA) model and an improved carbon cycle process model. We also assessed the net present value (NPV) for carbon budgets under different carbon price and discount rate scenarios using the NPV model. Our results indicated that the net primary productivity (NPP) was lower in places with low density forests that were situated at high elevation. The spatial distribution of carbon storage depended on NPP production and litter decompositon, which reflected specific vegetation as well as temperature and moisture gradients. The lowest amounts of carbon storage were in the center of the Qinling Mountains and also partly in the Daba area, which is a location associated with sparse grassland. Contrastingly, the broad-leaved forested area showed the highest amount of carbon storage. NPV was positively correlated with discount rate and carbon prices, thus resulting in the highest values in the forests and grassland. The net present value of total soil carbon sequestration in the six scenarios in 2015 was 3.555 b yuan, 3.621 b yuan, 5.421 b yuan, 5.579 b yuan, 7.530 b yuan, 7.929 b yuan; The net present value of total soil carbon sequestration in 6 scenarios in 2017 is 2.816 b yuan, 2.845 b yuan, 4.361 b yuan, 4.468 b yuan, 6.144 b yuan, 6.338 b yuan (billion = 109; b; RMB is the legal currency of the China, and its unit is yuan, 1 euro = 7.7949 yuan, and 1 pound = 9.2590 yuan). Levying a carbon tax would be a notable option for decision makers as they develop carbon emission reduction policies. Given this, incorporating discount rates and carbon pricing would allow for more realistic value estimations of soil organic carbon. This approach would also provide a theoretical basis and underscore the practical significance for the government to set a reasonable carbon price.

Multi-objective forestry increases the production of ecosystem services

2020 ◽  
Author(s):  
Olalla Díaz-Yáñez ◽  
Timo Pukkala ◽  
Petteri Packalen ◽  
Manfred J Lexer ◽  
Heli Peltola
Keyword(s):  
Ecosystem Services ◽  
Boreal Forest ◽  
Boreal Forests ◽  
Carbon Balance ◽  
Net Present Value ◽  
Simulation And Optimization ◽  
Multi Objective ◽  
Clear Cut ◽  
Trade Offs ◽  
Continuous Cover Forestry

Abstract Boreal forests produce multiple ecosystem services for the society. Their trade-offs determine whether they should be produced simultaneously or whether it is preferable to assign separate areas to different ecosystem services. We use simulation and optimization to analyse the correlations, trade-offs and production levels of several ecosystem services in single- and multi-objective forestry over 100 years in a boreal forest landscape. The case study area covers 3600 ha of boreal forest, consisting of 3365 stands. The ecosystem services and their indicators (in parentheses) considered are carbon sequestration (forestry carbon balance), biodiversity (amount of deadwood and broadleaf volume), economic profitability of forestry (net present value of timber production) and timber supply to forest industry (volume of harvested timber). The treatment alternatives simulated for each of the stands include both even-aged rotation forestry (thinning from above with clear cut) and continuous cover forestry regimes (thinning from above with no clear cut). First, we develop 200 Pareto optimal plans by maximizing multi-attribute utility functions using random weights for the ecosystem service indicators. Second, we compare the average level of ecosystem services in single- and multi-objective forestry. Based on our findings, forestry carbon balance and the amount of deadwood correlate positively with each other, and both of them correlate negatively with harvested timber volume and economic profitability of forestry. Despite this, the simultaneous maximization of multiple objectives increased the overall production levels of several ecosystem services, which suggests that the management of boreal forests should be multi-objective to sustain the simultaneous provision of timber and other ecosystem services.

Economic losses in carbon forestry due to errors in inventory data

2020 ◽  
Author(s):  
Roope Ruotsalainen ◽  
Timo Pukkala ◽  
Annika Kangas ◽  
Mari Myllymäki ◽  
Petteri Packalen
Keyword(s):  
Forest Inventory ◽  
Laser Scanning ◽  
Net Present Value ◽  
Nearest Neighbor ◽  
Carbon Price ◽  
Wood Products ◽  
Total Carbon ◽  
Economic Losses ◽  
Inventory Data ◽  
Forest Inventory Data

Forestry can help to mitigate climate change by storing carbon in trees, forest soils and wood products. Forest owners can be subsidized if forestry removes carbon from the atmosphere and taxed if forestry produces emissions. Errors in forest inventory data can lead to losses in net present value (NPV) if management prescriptions are selected based on erroneous data but not on correct data. This study assesses the effect of inventory errors on economic losses in forest management when the objective is to maximize the total NPV of timber production and carbon payments. Errors similar as in airborne laser scanning based forest inventory were simulated in stand attributes with a vine copula approach and nearest neighbor method. Carbon payments were based on the total carbon balance of forestry (incl. trees, soil and wood-based products) and calculations were carried out for 30 years using carbon prices of € 0, 50, 75, 100, 125 and 150 t-1. The results revealed that increasing the carbon price and decreasing the level of errors led to decreased losses in NPV. The inclusion of carbon payments for the maximization of the NPV decreased the effect of errors on the losses, which suggests that the value of collecting more accurate forest inventory data may decrease when the carbon price increases.

scholarly journals Changes in Regulating Ecosystem Services following Establishing Exclosures on Communal Grazing Lands in Ethiopia: A Synthesis

2013 ◽  
Vol 2013 ◽  
pp. 1-12 ◽  
Author(s):  
Wolde Mekuria
Keyword(s):  
Ecosystem Services ◽  
Net Present Value ◽  
Plant Species Richness ◽  
Local Communities ◽  
Grazing Land ◽  
Ecosystem Carbon ◽  
Total Soil ◽  
Soil N Stock ◽  
Degraded Ecosystems ◽  
Grazing Lands

In four separate studies undertaken in the northern highlands of Ethiopia, changes in regulating ecosystem services, economic viability, and the perception of local communities following establishing exclosures on communal grazing lands were investigated. Replicated 5-, 10-, 15-, and 20-year-old exclosures were selected and paired each exclosure with an adjacent grazing land. All exclosures displayed higher ecosystem services than communal grazing lands. Differences between exclosures and grazing lands varied between 29 (±4.9) and 61 (±6.7) Mg C ha−1 for ecosystem carbon stock (ECS), 2.4 (±0.6) and 6.9 (±1.8) Mg ha−1 for total soil N stock, and 17 (±3) to 39 (±7) Kg ha−1 for the available P stock, and all differences increased with exclosure duration. Differences in plant species richness and biomass between an exclosure age and communal grazing land were higher in oldest than in youngest exclosures. Over a period of 30 years, sequestered carbon dioxide was 246 Mg ha−1, total soil nitrogen increased by 7.9 Mg ha−1, and additional available phosphorous stocks amounted to 40 kg ha−1. The Net Present Value of exclosures ecosystem services under consideration was about 28% (837 US$) higher than alternative wheat production indicating that exclosures are competitive to alternative land uses. There are substantial opportunities to mobilize the local communities in efforts to establish exclosures, given that more than 75% had a positive view on exclosures effectiveness to restore degraded ecosystems. Establishing exclosures on communal grazing lands can be effective for restoring degraded ecosystems and the services that they provide.

RELATIONSHIP BETWEEN SOIL CAPABILITY CLASS AND ECONOMIC RETURNS FROM GRAIN CORN PRODUCTION IN SOUTHWESTERN ONTARIO

1976 ◽  
Vol 56 (3) ◽  
pp. 167-174 ◽  
Author(s):  
G. T. PATTERSON ◽  
E. E. MACKINTOSH
Keyword(s):  
Agricultural Land ◽  
Low Cost ◽  
Production Costs ◽  
Productivity Index ◽  
Economic Returns ◽  
Gross Margin ◽  
Corn Production ◽  
Land Quality ◽  
Frequency Distributions ◽  
Adequate Food

The "Canadian soil capability classification for agriculture" (Department of Regional Economic Expansion 1969) was tested for its ability to predict the economic profitability of land for grain corn production in Southwestern Ontario. The economic records from 83 grain corn operations were supplied by the Economics Branch, Ontario Ministry of Agriculture and Food. In addition to the itemization of production costs and returns, a soil capability class and productivity index were established for each record as a measure of land quality. Land quality as defined by productivity index was significantly correlated with gross returns and gross margin per hectare. Frequency distributions showed that high gross returns per hectare were three times as likely if the productivity index was between 90 and 100 than if it fell between 80 and 89. High returns per hectare and low cost per ton are indicative of cost controls coupled with high yields. The probability of obtaining this position is best when the highest quality land is used for production. To ensure adequate food supplies at reasonable cost to consumers it is essential that an agricultural land use policy incorporate land quality as one of its basic principles.

Dual-purpose canola—a new opportunity in mixed farming systems

2008 ◽  
Vol 59 (4) ◽  
pp. 291 ◽  
Author(s):  
J. A. Kirkegaard ◽  
S. J. Sprague ◽  
H. Dove ◽  
W. M. Kelman ◽  
S. J. Marcroft ◽  
...  
Keyword(s):  
Seed Yield ◽  
Compensatory Growth ◽  
Field Experiments ◽  
Yield Loss ◽  
Growth Yield ◽  
Farming Systems ◽  
Gross Margin ◽  
Dual Purpose ◽  
Trade Offs ◽  
Spring Canola

The term dual-purpose canola describes the use of a canola crop for forage before seed production. It could potentially provide a profitable and flexible break-crop option for mixed farms, but there have been no studies to test the concept in Australia. We investigated the feasibility of using canola in this way in field experiments near Canberra, Australia, from 2004 to 2006, using European winter and mid–late maturing Australian spring canola varieties. Winter varieties sown from early March to mid-April produced 2.5–5.0 t/ha of biomass providing 0.3–3.5 t/ha of high-quality forage grazed by sheep in winter. The spring varieties produced similar amounts of vegetative biomass from April sowing but were unsuited to the earlier March sowing as they flowered in early winter and did not recover from grazing. The canola forage was readily eaten by sheep; alkane-based estimates of diet composition indicated that >85% of the organic matter intake consisted of canola. Canola forage was also highly digestible (86–88%) and Merino hoggets grew at 210 g/day from a dry matter intake of 1530 g DM/day. The canola generally recovered well when grazed in winter before bud elongation. Delays in flowering associated with heavy grazing ranged from 0 to 4 days when grazed before buds were visible, to 28 days if the crop had commenced flowering. Significant delays in flowering (>14 days) associated with winter grazing did not reduce seed yield or oil content when favourable spring conditions allowed compensatory growth. Yield loss was observed when winter and spring conditions were unfavourable for compensatory growth, or if grazing continued too late into spring (late September) irrespective of seasonal conditions. The yield loss was more than offset by the value of the grazed forage and the mean gross margin for dual-purpose canola over the four experiments was $240 to $500 higher than for grain-only canola depending on the value assumed for the forage. The study indicates there is considerable scope to capture value from grazing early-sown canola crops during winter without significant, uneconomic trade-offs with seed yield. Further investigations in other medium to high rainfall environments in southern Australia are warranted.

scholarly journals Precio de la tierra con presión urbana: Un modelo para España

2011 ◽  
Vol 8 (1) ◽  
pp. 3 ◽  
Author(s):  
Esther Decimavilla ◽  
Carlos San Juan ◽  
Stefan Sperlich
Keyword(s):  
Panel Data ◽  
Agricultural Land ◽  
Housing Prices ◽  
Farm Income ◽  
Land Type ◽  
Regional Specialization ◽  
Agricultural Income ◽  
Key Variables ◽  
Agricultural Land Prices ◽  
The Impact

This paper examines agricultural land prices and the variables that affect them as a way of identifying and explaining the recent price cycle in Spain. The key variables in our panel data model are location and expected farm income as fundamental factors and housing prices and increases in irrigated areas as nonfundamental dependant variables. The price cycle is also related to regional specialization and the impact of integration in the CAP. The novelty of the paper consists in the use of panel data models to identify fundamental factors related to agricultural productivity (expected agricultural income) and location and nonfundamental or speculative factors (housing prices, irrigated areas and demographic changes) using regional data associated with land type.

scholarly journals Participatory Mapping of Demand for Ecosystem Services in Agricultural Landscapes

Agriculture ◽  
2021 ◽  
Vol 11 (12) ◽  
pp. 1193
Author(s):  
Carmen Schwartz ◽  
Mostafa Shaaban ◽  
Sonoko Dorothea Bellingrath-Kimura ◽  
Annette Piorr
Keyword(s):  
Land Use ◽  
Ecosystem Services ◽  
Agricultural Land ◽  
Arable Land ◽  
Agricultural Landscapes ◽  
The Body ◽  
Poor Correlation ◽  
Stakeholder Groups ◽  
Trade Offs ◽  
Stakeholder Workshop

Agricultural land use systems have been optimized for producing provisioning ecosystem services (ES) in the past few decades, often at the expense of regulating and cultural services. Research has focused mainly on the supply side of ES and related trade-offs, but the demand side for regulatory services remains largely neglected. The objective of this paper is to evaluate the usefulness of participatory geographic information system (PGIS) methods for demand assessment in larger rural and agrarian contexts by identifying spatially explicit demand patterns for ES, thereby enlarging the body of participatory approaches to ES-based land use management. Accordingly, we map, assess, and statistically and spatially analyze different demands for five ES by different stakeholder groups in agricultural landscapes in three case studies. The results are presented in a stakeholder workshop and prerequisites for collaborative ES management are discussed. Our results show that poor correlation exists between stakeholder groups and demands for ES; however, arable land constitutes the highest share of the mapped area of demands for the five ES. These results have been validated by both the survey and the stakeholder workshop. Our study concludes that PGIS represents a useful tool to link demand assessments and landscape management systematically, especially for decision support systems.

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