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Economic Evaluation of Soils

Economic Evaluation of Soils. Vala Ragnarsdottir. All data from Stijn Reinhart, Wageningen The method: basic design. Cost Benefit Analysis Define alternatives Compare measures with non-action scenario Quantify the effects of measures Valuation based on soil functions.

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Economic Evaluation of Soils

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  1. Economic Evaluation of Soils Vala Ragnarsdottir

  2. All data from Stijn Reinhart, Wageningen The method: basic design • Cost Benefit Analysis • Define alternatives • Compare measures with non-action scenario • Quantify the effects of measures • Valuation based on soil functions

  3. Extent of soil degradation in Europe • Water erosion (arable land) • PESERA (vulnerability) • >0.5 t/ha/yr • Combined with CORINE 2000 (arable land) • Soil organic matter • OCC data from European Soil Database + pedotransfer rules • 2% limit, or 3.4% SOM • Overlap with erosion measure: SOM measure only on areas of low erosion risk • Compaction • Susceptibility data (high & very high) • Salinization • Irrigated land in Mediterranean countries + Hungary

  4. Extent of soil degradation (forestry & construction) • Forestry • Combination of PESERA & CORINE/forest • Calculation of total area harvested per year: 8.2% • Construction • Combination of PESERA & CORINE/building sites • Correction factors according to extent of urban area • Roads not included

  5. Areas of application [2]Irrigated area in Southern Europe.

  6. On-site costs • Based on agri-environment schemes • (subsidy must cover difference between farmer’s benefit and total cost) • Add on-site benefit • On literature • Calculated per hectare: • Cost/ha * area of application = total cost

  7. Areas of application

  8. On-site benefits • Erosion effect on productivity: local studies, but difficult to generalize • Rooting depth • Water retention • Loss of nutrients • Conclusion: on-site benefits in Europe must be low • Comparison of different figures in literature • Educated guess of average impact in affected areas • Cumulative discounted benefit (erosion effect incremental) • 20 years for erosion and SOM, 4 years for compaction • 4% discount rate

  9. Off-site benefits • Erosion: • Based on EEA figure of € 32/ha/year • transformed into tonnes of sediment • Benefit = avoided cost of dredging + disposal sediment + removal of pollution from water • SOM loss: • Same, plus carbon storage effect • Nothing for compaction • Salinization: rough indication as % of on-site benefits

  10. The big picture

  11. Thank you © Wageningen UR

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