Modeling Costs and Benefits of Biodegradable Mulches

1. Modeling Costs and Benefits of Biodegradable Mulches SCRI BDM Economics Working Group Srinivasa Ponnaluru June 1, 2011

2. Introduction • Agricultural production results in an array of emissions. • Mulch residues in soil • Toxic fumes from burning of plastics • Build up of pollutants in soil, and environment can affect production. • Stock of pollutants changes over time due to • Additional loads (mulch usage) • Decay of existing stocks

3. Model • Net benefits can be specified as: B –benefits TC –total cost of production D –damages from pollutant C –cost of emission control E – current emissions S –stock of pollutant P –price of output Q –quantity of output x –traditional inputs

4. Costs… • Costs of emission control • Collection, transportation, landfill fees • Costs of production • Input costs, labor, operational costs • Maintenance costs • Wind, hail, flooding damage…

5. Benefits • Revenues from sale of produce • Price premiums • Early maturity • Higher yield • Higher quality • Longer shelf life • Reduced plant protection chemical usage • Lower pest and disease incidence (...?) • Soil quality changes (…benefits…?) • Irrigation water savings (…?)

6. WA Enterprise Budget: High tunnel Tomato

7. Variable costs

8. Variable costs

9. Fixed costs

10. Comparison per 1000 ft2

11. Summary • Specification of damage function • Data needs for estimating price premiums • Enterprise budgets • Open field tomato • High tunnel tomato

12. Thank You