TY - CHAP

T1 - Valuation approaches for soil carbon

AU - Abson, David

AU - Pascual, Unai

AU - Termansen, Mette

PY - 2015

Y1 - 2015

N2 - Valuation of soil carbon can be understood as the process for assigning ‘weights’ to soil carbon when these are inadequately represented in decision making processes. There are different types of weights or ‘values’ that can be assigned to soil carbon. One approach is to assign monetary weights to such resources using economic valuation models. The total set of such monetized weights is referred to as total economic value (TEV). The different components of the value of soil carbon differ both conceptually and with respect to how they can be measured or manifested. There are various methods for quantifying soil carbon values that differ with respect to the types of values they are suitable or able to assess. This chapter reviews the various valuation approaches that can be applied to estimate different components of the TEV of soil carbon. In this respect, it discusses how soil carbon values can be estimated through both stated and reveal preferences methods, and places particular emphasis on the production function approach. In addition other approaches are presented, including the preventive or mitigation expenditure (marginal abatement costs) approach and the social cost of carbon approach. Lastly, the chapter addresses the question of how economic values can be included in economic decision making processes. Three main alternatives are explored in terms of their advantages and disadvantages: cost–benefit analysis (CBA), multi-criteria analysis (MCA) and cost-effectiveness analysis (CEA).

AB - Valuation of soil carbon can be understood as the process for assigning ‘weights’ to soil carbon when these are inadequately represented in decision making processes. There are different types of weights or ‘values’ that can be assigned to soil carbon. One approach is to assign monetary weights to such resources using economic valuation models. The total set of such monetized weights is referred to as total economic value (TEV). The different components of the value of soil carbon differ both conceptually and with respect to how they can be measured or manifested. There are various methods for quantifying soil carbon values that differ with respect to the types of values they are suitable or able to assess. This chapter reviews the various valuation approaches that can be applied to estimate different components of the TEV of soil carbon. In this respect, it discusses how soil carbon values can be estimated through both stated and reveal preferences methods, and places particular emphasis on the production function approach. In addition other approaches are presented, including the preventive or mitigation expenditure (marginal abatement costs) approach and the social cost of carbon approach. Lastly, the chapter addresses the question of how economic values can be included in economic decision making processes. Three main alternatives are explored in terms of their advantages and disadvantages: cost–benefit analysis (CBA), multi-criteria analysis (MCA) and cost-effectiveness analysis (CEA).

KW - Sustainability Science

KW - Ecosystems Research

UR - http://www.soilcarbon.org.uk/files/26.07.13%20SCOPE%20RAP%20BSC%20Synthesis%20Volume%20Synopsis.pdf

UR - http://www.cabi.org/bookshop/book/9781780645322

M3 - Contributions to collected editions/anthologies

SN - 978-1-78064-532-2

T3 - SCOPE series

SP - 214

EP - 223

BT - Soil Carbon

A2 - Banwart, Steven A.

A2 - Noellemeyer, Elke

A2 - Milne, Eleanor

PB - CABI

CY - Wallingford

ER -