Steven E. Kraft

The Tragedy of Ecosystem Services

ABSTRACT Derived from funds of natural capital, ecosystem services contribute greatly to human welfare, yet are rarely traded in markets. Most supporting (e.g., soil formation) and regulating (e.g., water purification, pest regulation) ecosystem services, and some cultural (e.g., aesthetic enrichment) and provisioning (e.g., capture fisheries, fuel wood) ecosystem services are declining because of a complex social trap, the “tragedy of ecosystem services,” which results in part from the overconsumption of common-pool resources. Additionally, current economic incentives encourage the development of funds of natural capital on private lands for marketable commodities at the expense of ecosystem services that benefit the public. Such ecosystem services are therefore underprovided. Most critically, property law reinforces these market failures by creating incentives to convert funds of natural capital into marketable goods and by assigning no property rights to ecosystem service benefits. Although there is no one pathway out of this tragedy of ecosystem services, potentially effective remedies lie in the evolution of the common law of property, in the reform of economic incentives, and in the development of ecosystem service districts.

THE TECHNICAL EFFICIENCY OF ILLINOIS GRAIN FARMS: AN APPLICATION OF A RAY-HOMOTHETIC PRODUCTION FUNCTION

The purpose of this paper is to measure the extent of technical inefficiency among a sample of Illinois grain farms using the corrected ordinary least squares method. Instead of assuming a Cobb-Douglas production function, a linear form of the ray-homothetic is used. The results show a significant amount of technical inefficiency among all the farms in the sample, but with large farms being less technically inefficient than small farms.

Modeling Enrollment in the Conservation Reserve Program by Using Agents within Spatial Decision Support Systems: An Example from Southern Illinois

Existing models of agricultural decisionmaking based on economic optimization often fall short of capturing the complex dynamics of land-use choices at both individual parcel and watershed-level scales. The complexity arises from an interplay of several factors, as explained by Herbert Simons model of bounded rationality, the theory of diffusion of innovations through spatial contagion, the role of personal environmental values and local culture, and simple historical momentum. This complexity can be captured using ‘artificial life agents’ that model land-use choice for individual parcels by considering characteristics and personal beliefs of the owner or operator, physical traits of the land, and information obtained via social networks. Agents are therefore able to consider holistically a large number of factors affecting land-use choice. The creation of agent-based models of human behavior described herein is based upon empirical data on the acceptance of Conservation Reserve Program for the Cache River watershed of southern Illinois (USA). These models are interfaced with a geographic information system to produce a spatial decision support system capable of anticipating the effects of policies that affect land-use decisionmaking on a real landscape and their economic performance.

How to sell ecosystem services: a guide for designing new markets

Payments for ecosystem services (PES) can improve environmental quality by aligning the incentives of individual landowners with societal interests in providing valuable ecosystem services such as carbon storage, water quality, flood control, and wildlife habitat. However, for this potential to be realized, many institutional details and technical challenges must be addressed. In this review, we discuss six critical issues for creating effective PES markets: using the appropriate type of market institution, defining suitable spatial and temporal scales for the market, promoting additionality (avoiding payments for services that would have been provided even in the absence of payments) so that payments result in increased services, offering incentives for projects that generate multiple ecosystem services, considering practice-based versus performance-based payments, and eliminating opportunities for strategic behavior aimed at “gaming the system”. We illustrate these issues with an example of how PES coul...

Enrolling conservation buffers in the CRP

Abstract Landowner willingness to participate in buffer programs such as the Conservation Reserve Program is explored in the context of the Total Maximum Daily Load program, to differentiate between those who are likely to enroll from others and to determine the probability of enrollment. Using survey data, results indicate that simply informing farmland owners of the eligibility of their land has the potential to increase willingness for filter strip enrollment. Farm owners more likely to participate are those who have greater debts, rely less on farm-generated income as a percentage of total family income and visit their local Natural Resources Conservation Service office more regularly.

Evaluating the Impact of Policy-induced Land Use Management Practices on Non-point Source Pollution Using a Spatial Decision Support System

Abstract State and federal conservation compliance policies in the United States are aimed, in part, at reducing non-point pollution and maintaining long-term agricultural productivity. These policies affect land use and management practices on the nations farms. Farms and farmers, however, are part of a larger agri-ecological system and changes in farming practices affect linked socio-economic, biologic, and hydrologic systems. It is difficult, therefore, to foresee the wide ranging and long-term consequences that are set into motion by changes in agricultural policy. Yet, these consequences must be understood if we are to avoid the deleterious side effects or capture the collateral benefits associated with specific policies. A Spatial Decision Support System (SDSS) has been developed here to help understand some of these consequences within the context of watershed management and the control of non-point source pollution. This SDSS consists of a Geographic Information System (GIS), two spatial models (GEOLP and AGNPS), and a graphical user interface. The purpose of this SDSS is to assist decision-makers as they investigate the impact of agricultural policy on non-point source pollution and the local economy. The SDSS is used to simulate the potential impacts of alternative policy scenarios in the Big Creek watershed. The models and methodologies described here, however, are general and can provide benefits to a variety of decision-makers engaged in watershed management and the reduction of non-point pollution.

Technological change in Illinois agriculture, 1982-1984

This paper has two main purposes: ( 1 ) to develop a method for measuring the extent and bias of technical change which involves the use of non-parametric production frontiers and does not require information on prices or factor shares; (2) to apply this method to individual farm data drawn from a sample of Illinois grain farms for the years 1982 and 1984. The results indicate that technical innovation is land using in nature and that the rate of technical change is related to the size of farm.

Assessing the US watershed management movement: national trends and an illinois case study

Local watershed planning is an increasingly important component of environmental management. This article provides an overview of local watershed management efforts occurring across the US and then focuses on one case study from southern Illinois. First, analysis of 1145 local watershed groups shows that government agencies, farmers, and rural residents are key stakeholders in local groups that primarily deal with regional environmental stressors in the form of soil erosion, nutrients, and agrichemicals. Second, the role of watershed partnerships in mediating the complex interactions among stakeholders and local water resources are investigated through a case study of one watershed group. The Cache River is located in the far-southern tip of Illinois and a watershed planning process was initiated there in the 1990s. An in-depth assessment of this watershed planning process was accomplished through participant interviews, stakeholder focus groups, and a regional telephone survey. This case study illuminates how different stakeholder groups have varying perceptions as to the efficacy and success of watershed management plans.

The use of conservation practices by part-owner operators

Using survey data from six study sites, this article examines the differences in conservation practices part-owner operators apply to their owned land and rented land. Based on t-tests and regression analysis, the results indicate that operators who farm both land they own and land they rent tend to apply more conservation practices exclusively to the land they own. Regression models using variables related to tenure, perception of erosion problems and age among others explained up to 32% of the variation in the numbers of practices used on owned versus rented land.

Environmental Systems Simulations for Carbon, Energy, Nitrogen, Water, and Watersheds: Design Principles and Pilot Testing.

ABSTRACT Guided by the Next Generation Science Standards and elements of problem-based learning, four human–environment systems simulations are described in brief—carbon, energy, water, and watershed—and a fifth simulation on nitrogen is described in more depth. These science, technology, engineering, and math (STEM) education simulations illustrate design principles that make them engaging to students, such as dynamic visual environments that are controlled by the user and immediate visual feedback to user actions taken. The simulations are contextualized in real-world natural resources management challenges involving biogeochemical cycles, such as Gulf of Mexico hypoxia, which provide an opportunity to “win the game,” while the introduction of complexity in steps provides scaffolding. Pretest versus posttest results indicate a substantial and statistically significant improvement in learning outcomes resulting from using the nitrogen simulation, though there was no comparable pedagogical control group. Attitudinal feedback indicates rich student engagement with the nitrogen simulation.