By Bekele Shiferaw, H A Freeman, Scott M Swinton
In keeping with expanding matters concerning the degradation of usual assets and the sustainability of agriculture, many learn courses were tested in common source administration (NRM). even if, even if equipment for comparing the affects of crop development applied sciences are good built, there's a dearth of tools for comparing the affects of NRM interventions. this can be in part end result of the complexity of interactions between ordinary assets, spatial and temporal dimensions of effect, and the valuation of direct and oblique environmental charges and merits. This publication discusses the original positive factors and methodological problems of NRM influence evaluate. It examines the strengths and weaknesses of varied influence review techniques, together with econometric, bio-economic, and extra direct equipment. It additionally assesses and identifies info requisites for constructing impression symptoms and recommends appropriate methodologies for assessing the affects of NRM applied sciences on concerns equivalent to soil and water conservation and watershed and biodiversity administration.
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Additional info for Natural Resource Management in Agriculture: Methods for Assessing Economic and Environmental Impacts
G. g. g. g. Carbon sequestration, reduced flooding, biodiversity conservation) – Seldom included in IA – Usually ignored in IA Source: Modified based on Dixon et al. (1994) and others tree planting. In the absence of markets, such non-tradable and external bene ts need to be estimated by other methods using surrogate markets or constructed (hypothetical) markets in areas where the bene ts are captured. Because of non-excludability, the level of investment by local producers to generate such services may be socially sub-optimal, necessitating many governments to intervene in their production and management.
Environmental and resource service ows that offer indirect use and non-use bene ts to society certainly have value, but their measurement is a challenge. This chapter focuses on valuation methods and associated issues for measuring the social bene ts that result from NRM investments. Several thorny issues are associated with valuation of the productivity and environmental impacts of NRM investments. These include incomplete understanding of ecosystem functions and dif culties in predicting the effect of interventions on major ecosystem functions and services; lack of measurable performance indicators when effects are relatively well understood; and problems in relating changes in the ow of ecosystem services to human welfare.
OV is a measure of how much individuals are willing to pay for the option of preserving the asset for future personal use. BV is the value that individuals are willing to pay to ensure that the resource will be preserved for future generations. ExV is the value that individuals attach to the mere existence of a given natural resource or environmental asset unrelated either to current or optional use. Thus: TEV = UV + NUV = (Direct use value + Indirect use value) + (OV + ExV + BV) (11) The nature of the externality and the structure of markets will have substantial implications on the choice of effects to be valued and the valuation methods to be used.