Model-Based Valuation of Ecosystem Services Using Bio-Economic Farm Models: Insights for Designing Green Tax Policies and Payment for Ecosystem Services
The integration of ecosystem services (ESs) valuation into agricultural policy frameworks is critical for fostering sustainable land management practices. This study leverages the redesigned version of the bio-economic farm model MODAM (Multi-Objective Decision Support Tool for Agro-Ecosystem Manage...
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| Format: | Article |
| Language: | English |
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MDPI AG
2024-12-01
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| Series: | Agriculture |
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| Online Access: | https://www.mdpi.com/2077-0472/15/1/60 |
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| author | Seyed-Ali Hosseini-Yekani Stefan Tomaczewski Peter Zander |
| author_facet | Seyed-Ali Hosseini-Yekani Stefan Tomaczewski Peter Zander |
| author_sort | Seyed-Ali Hosseini-Yekani |
| collection | DOAJ |
| description | The integration of ecosystem services (ESs) valuation into agricultural policy frameworks is critical for fostering sustainable land management practices. This study leverages the redesigned version of the bio-economic farm model MODAM (Multi-Objective Decision Support Tool for Agro-Ecosystem Management) to estimate the shadow prices of ESs, enabling the derivation of demand and supply curves for nitrate leaching and soil erosion control, respectively. Two hypothetical farms in Brandenburg, Germany—a smaller, arable farm in Märkisch-Oderland and a larger, diversified farm with livestock in Oder-Spree—are analyzed to explore the heterogeneity in shadow prices and corresponding cropping patterns. The results reveal that larger farms exhibit greater elasticity in response to green taxes on nitrate use and lower costs for supplying erosion control compared to smaller farms. This study highlights the utility of shadow prices as proxies for setting green taxes and payments for ecosystem services (PESs), while emphasizing the need for differentiated policy designs to address disparities between farm types. This research underscores the potential of model-based ESs valuation to provide robust economic measures for policy design, fostering sustainable agricultural practices and ecosystem conservation. |
| format | Article |
| id | doaj-art-6db35b99a13045bf92fc6c2ca09277fe |
| institution | Kabale University |
| issn | 2077-0472 |
| language | English |
| publishDate | 2024-12-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Agriculture |
| spelling | doaj-art-6db35b99a13045bf92fc6c2ca09277fe2025-01-10T13:13:33ZengMDPI AGAgriculture2077-04722024-12-011516010.3390/agriculture15010060Model-Based Valuation of Ecosystem Services Using Bio-Economic Farm Models: Insights for Designing Green Tax Policies and Payment for Ecosystem ServicesSeyed-Ali Hosseini-Yekani0Stefan Tomaczewski1Peter Zander2Leibniz Centre for Agricultural Landscape Research (ZALF), 15374 Müncheberg, GermanyLeibniz Centre for Agricultural Landscape Research (ZALF), 15374 Müncheberg, GermanyLeibniz Centre for Agricultural Landscape Research (ZALF), 15374 Müncheberg, GermanyThe integration of ecosystem services (ESs) valuation into agricultural policy frameworks is critical for fostering sustainable land management practices. This study leverages the redesigned version of the bio-economic farm model MODAM (Multi-Objective Decision Support Tool for Agro-Ecosystem Management) to estimate the shadow prices of ESs, enabling the derivation of demand and supply curves for nitrate leaching and soil erosion control, respectively. Two hypothetical farms in Brandenburg, Germany—a smaller, arable farm in Märkisch-Oderland and a larger, diversified farm with livestock in Oder-Spree—are analyzed to explore the heterogeneity in shadow prices and corresponding cropping patterns. The results reveal that larger farms exhibit greater elasticity in response to green taxes on nitrate use and lower costs for supplying erosion control compared to smaller farms. This study highlights the utility of shadow prices as proxies for setting green taxes and payments for ecosystem services (PESs), while emphasizing the need for differentiated policy designs to address disparities between farm types. This research underscores the potential of model-based ESs valuation to provide robust economic measures for policy design, fostering sustainable agricultural practices and ecosystem conservation.https://www.mdpi.com/2077-0472/15/1/60ecosystem services valuationbio-economic farm modelsMODAMshadow pricesgreen tax policypayment for ecosystem services |
| spellingShingle | Seyed-Ali Hosseini-Yekani Stefan Tomaczewski Peter Zander Model-Based Valuation of Ecosystem Services Using Bio-Economic Farm Models: Insights for Designing Green Tax Policies and Payment for Ecosystem Services Agriculture ecosystem services valuation bio-economic farm models MODAM shadow prices green tax policy payment for ecosystem services |
| title | Model-Based Valuation of Ecosystem Services Using Bio-Economic Farm Models: Insights for Designing Green Tax Policies and Payment for Ecosystem Services |
| title_full | Model-Based Valuation of Ecosystem Services Using Bio-Economic Farm Models: Insights for Designing Green Tax Policies and Payment for Ecosystem Services |
| title_fullStr | Model-Based Valuation of Ecosystem Services Using Bio-Economic Farm Models: Insights for Designing Green Tax Policies and Payment for Ecosystem Services |
| title_full_unstemmed | Model-Based Valuation of Ecosystem Services Using Bio-Economic Farm Models: Insights for Designing Green Tax Policies and Payment for Ecosystem Services |
| title_short | Model-Based Valuation of Ecosystem Services Using Bio-Economic Farm Models: Insights for Designing Green Tax Policies and Payment for Ecosystem Services |
| title_sort | model based valuation of ecosystem services using bio economic farm models insights for designing green tax policies and payment for ecosystem services |
| topic | ecosystem services valuation bio-economic farm models MODAM shadow prices green tax policy payment for ecosystem services |
| url | https://www.mdpi.com/2077-0472/15/1/60 |
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