A Measurement Protocol for Soil

A Measurement Protocol for Soil C: Influence on Efficient Contract Design : 

A Measurement Protocol for Soil C: Influence on Efficient Contract Design Siân Mooney1, John Antle2, Susan Capalbo2 and Keith Paustian3 AAEA Annual Meetings Long Beach, CA July 30, 2002. 1 University of Wyoming 2 Montana State University 3 Colorado State University

Background/Motivation : 

Background/Motivation Kyoto protocol – recent trades Agriculture (8% US reduction) Increase biomass Decrease soil disturbance/tillage Needs Institutions Contracts Enforcement

Contract Design : 

Contract Design Payment for practice Per hectare contract Payment for each credit Per credit contract One C-credit = 1 tonne additional C sequestered

Results from Previous WorkAntle, J., S. Capalbo, S. Mooney, E. Elliot and K. Paustian. Spatial Heterogeneity and the Design of Efficient Carbon Sequestration Policies for Agriculture. Journal of Environmental Economics and Management. (Forthcoming). : 

Results from Previous WorkAntle, J., S. Capalbo, S. Mooney, E. Elliot and K. Paustian. Spatial Heterogeneity and the Design of Efficient Carbon Sequestration Policies for Agriculture. Journal of Environmental Economics and Management. (Forthcoming).

Implementing per Credit Contracts : 

Implementing per Credit Contracts Too costly to implement Stavins (1998, 1999); Ringus (2002) Few studies have examined measurement costs under these contracts Impact of measurement costs on efficiency is an empirical issue

Objectives : 

Objectives Develop a measurement protocol for soil C sequestration Estimate cost for dryland cropping systems in Montana Determine influence of measurement costs on the relative efficiency of per-credit and per hectare contracts

Measurement Protocol : 

Measurement Protocol Biophysical models – estimate rate of C sequestration Measure baseline C – statistical sampling Measure increase in C over contract duration Measure C levels at end of contract

Sampling Scheme, Costs and Frequency : 

Sampling Scheme, Costs and Frequency Elements of measurement scheme Stratified random sampling scheme Cost per sample = $16.37 Frequency = 4 Measurement cost=sample size*cost per sample*frequency of sampling

Study Area : 

Study Area Field level production data Climate, soil and biophysical factors

Models : 

Models Econometric Models (output supply, input demand) Century Ecosystem Model (NREL) Land use simulation -stochastic output and input prices -policy designs and payment levels parameter estimates carbon estimates Population to be sampled Total C sequestered

Data for Measurement Scheme : 

Data for Measurement Scheme

Cost per Credit (10% error, 95% confidence) : 

Cost per Credit (10% error, 95% confidence)

Comparison of Contracts with Monitoring at $30/credit : 

Comparison of Contracts with Monitoring at $30/credit credit

Implications : 

Implications Measurement cost per credit could be small per credit contract likely to be more efficient than per hectare could be high payoffs to implementing a per credit contract Error and confidence - partially a function of the value of each C credit Spatial heterogeneity within the contracting region influences measurement cost

More Information : 

More Information www.climate.montana.edu This research is funded by EPA-STAR, NRI, NSF, CASMGS and the Montana Agricultural Experiment Station