Crediting uncertain ecosystem services in a market.

Abstract: The margin of safety (MOS) approach is an increasingly prevalent tool for ensuring the integrity of market-based programs for providing ecosystem services. Over-crediting is reduced by setting aside mean estimates of uncertain services in favor of a more conservative estimate. Like many en...

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Publicado en:Journal of Environmental Economics & Management Vol. 66; no. 3; pp. 554 - 573
Autores principales: Springborn, Michael, Yeo, Boon-Ling, Lee, Juhwan, Six, Johan
Formato: Artículo
Publicado: Academic Press Inc. Nov2013
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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      dt: Nov2013
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      pub: Academic Press Inc.
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        10.1016/j.jeem.2013.07.005
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        atl: Crediting uncertain ecosystem services in a market.
      aug:
        au:
          Springborn, Michael
          Yeo, Boon-Ling
          Lee, Juhwan
          Six, Johan
        affil:
          University of California, Davis, CA, United States
          Department of Environmental Science & Policy, 2104 Wickson Hall, Davis, CA 95616, United States
          Department of Environmental Systems Science, ETH-Zurich, Zurich, Switzerland
      su:
        Environmental policy
        Ecosystem services
        Ecological integrity
        Multiple scale method
        Greenhouse gases
        Distributors (Commerce)
      sug:
        subj:
          Environmental policy
          All other merchant wholesalers
          Other provincial and territorial public administration
          Administration of Air and Water Resource and Solid Waste Management Programs
          Ecosystem services
          Ecological integrity
          Multiple scale method
          Greenhouse gases
          Distributors (Commerce)
      keyword:
        Greenhouse gas offsets
        Margin of safety
        Market-based instruments
        Risk
        Uncertainty discount
        Greenhouse gas offsets
        Margin of safety
        Market-based instruments
        Risk
        Uncertainty discount
      ab: Abstract: The margin of safety (MOS) approach is an increasingly prevalent tool for ensuring the integrity of market-based programs for providing ecosystem services. Over-crediting is reduced by setting aside mean estimates of uncertain services in favor of a more conservative estimate. Like many environmental policy problems, ecosystem service markets involve the aggregation of uncertainty over multiple scales, e.g. from landowners to market intermediaries to the overall market. We examine how the MOS instrument affects, and is affected by, an ecosystem services market. We show that the common bottom-up approach of imposing risk preferences at a local, disaggregated level—held over from earlier development in the context of toxics and command and control-style health risk regulation—leads to several unintended consequences. Furthermore, discounting landowner services can actually increase their profits, conditional on the elasticity of credit demand. We illustrate theoretical insights with an empirical application to greenhouse gas offset crediting in agriculture.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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