Marketed Outputs and Non-Marketed Outputs: The Marginal Costs of Producing Ecosystem Services
| dc.creator | Wossink, Ada | |
| dc.creator | Sauer, Johannes | |
| dc.date | 2017-04-01T13:43:28Z | |
| dc.date.accessioned | 2026-07-09T05:09:15Z | |
| dc.description | We provide a new approach for assessing the cost of marginal ecosystem changes and the effectiveness of green payment schemes. The approach is based on a theoretical and empirical analysis of the bio-economic production interactions between marketed outputs and non-marketed ecosystem services at the micro level. To frame the economic nature of the problem, we employ a generalized joint production model in combination with cost minimization. The generalized joint production framework allows for the consideration of complementary, supplementary and competitive relationships between agricultural production and non-marketed ecosystem services generation and avoids double counting. From this theoretical model we distinguish three theoretical cases depending on the imposed minimum acceptable level of the non-marketed ecosystem services. We employ farm level panel data for the UK to empirically investigate these cases. More specifically, to represent and evaluate the production structure, we estimate first- and second-order elasticities derived from a flexible transformation function. Results show that the majority of farms produce agricultural output and ecosystem services in a complementary relationship. Generation of multiple ecosystem services on the same farm showed either a supplementary or competitive relationship. Changing the composition of the ecosystem services output would have very different implications for individual farms. | |
| dc.identifier | doi:10.22004/ag.econ.60804 | |
| dc.identifier | https://ageconsearch.umn.edu/record/60804/files/Paper%20Denver%202010%20%20for%20Ageconsearch.pdf | |
| dc.identifier | http://ageconsearch.umn.edu/record/60804 | |
| dc.identifier.uri | http://hdl.handle.net/123456789/559744 | |
| dc.language | eng | |
| dc.publisher | ||
| dc.source | http://ageconsearch.umn.edu/record/60804 | |
| dc.title | Marketed Outputs and Non-Marketed Outputs: The Marginal Costs of Producing Ecosystem Services | |
| dc.type | Text |