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Economic Valuation of Soil Functions: Phase 1

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Economic Valuation of Soil Functions: Phase 1 Economic Valuation of Soil Functions Phase 1: Literature Review and Method Development Prepared for: Defra Prepared by: David Harris, ADAS Boxworth, Battlegate Road, Boxworth, Cambridge, CB3 8NN Dr. Bob Crabtree, CJC Consulting, Oxford John King, ADAS Boxworth Paul Newell-Price, ADAS Gleadthorpe Date: July 2006 Copyright The proposed approach and methodology is protected by copyright and no part of this document may be copied or disclosed to any third party, either before or after the contract is awarded, without the written consent of ADAS. 0936648 Economic Valuation of Soil Functions Phase 1: Literature Review and Method Development Glossary of Terms ALC Agricultural Land Classification AONB Area of Outstanding Natural Beauty BMP Best Management Practice generally defined by being within the Codes of Good Agricultural Practice for Air, Water and Soil, COGAP (Defra) Brickfield series An imperfectly drained soil with a fine loamy texture CAP Common Agricultural Policy Clifton series An imperfectly drained, medium to coarse-textured soil with a perched water table Cu Copper CV Contingent valuation DE Direct energy used in fuel for field operations Defra Department for Environment, Food and Rural Affairs DoE Department of the Environment (now part of Defra and distinct from the Environment Agency) Dunkeswick series A poorly drained soil with a fine loamy topsoil, and a clay subsoil beginning at between 40 and 80 cm depth ELS Entry Level Scheme of Environmental Stewardship Scheme ESA Environmentally Sensitive Area FIOs Faecal indicator organisms GAEC Good Agricultural and Environmental Condition GHGs Greenhouse gases Hallsworth Series A poorly drained, heavy-textured soil with shrink-swell properties HLS Higher Level Scheme of Environmental Stewardship Scheme IE Indirect energy used in manufacture of inputs, machinery and transport K Potash MAFF Ministry of Agriculture, Fisheries and Food Mineral soil All soils that have less than 6% organic matter in the surface soil horizons (MAFF, 2000) MWDs Machinery work days Ni Nickel N Nitrogen Organic soil A soil with high levels of organic matter – above 6% organic matter in the topsoil (MAFF, 2000). P Phosphorus PSYCHIC Phosphorus and sediment yield characteristics in catchments PV Present value Rhizobium Rhizobium bacteria cause the roots of white clover to develop nodules in which atmospheric nitrogen is fixed SAC Special Area of Conservation SAPs Special Protection Area SOC Soil organic carbon Soil series Soils are categorised into a number of soil series, of which Clifton and Hallsworth are two SPS Single payment scheme SSSI Site of Special Scientific Interest SUDS Sustainable urban drainage systems TP Total phosphorus TSC Total sequestered carbon UKCIP United Kingdom Climate Impacts Programme WFD Water Framework Directive WHO World Health Organisation WSP Water storage potential WTP Willingness to pay Zn Zinc i Economic Valuation of Soil Functions Phase 1: Literature Review and Method Development Acknowledgements The project team would like to thank the steering group at Defra for their input and assistance, particularly since this is a new area of work. We would also like to thank the following for their assistance with the report: Professor Ken Willis, University of Newcastle on Tyne Professor Brian Chambers, ADAS Dr. Mark Shepherd, ADAS ii Economic Valuation of Soil Functions Phase 1: Literature Review and Method Development Contents 1. Executive Summary................................................................................................. 1 1.1 Remit ........................................................................................................................................ 1 1.2 The Project ............................................................................................................................... 1 2. Introduction............................................................................................................ 10 3. Marginal Valuation of Soil Functions and Services............................................. 13 3.1 Valuing Soil Services .............................................................................................................. 13 3.2 Market-based Approaches...................................................................................................... 14 3.3 Valuation of Non-market (environmental) Outputs.................................................................. 17 3.4 Cost-based Approaches ......................................................................................................... 18 3.5 Marginal Valuation of Soil Services: Conclusions ................................................................... 19 3.6 Total Marginal Valuation of Soil Services................................................................................ 19 4. Carbon Storage and Sequestration ...................................................................... 21 4.1 Technical Review.................................................................................................................... 21 4.2 Valuation of Carbon Storage and Sequestration..................................................................... 25 4.3 Benefits from Carbon Sequestration in Soils........................................................................... 27 4.4 Conclusions ............................................................................................................................ 29 5. Water Storage and Flow Mediation....................................................................... 31 5.1 Technical Review.................................................................................................................... 31 5.2 Water Storage Potential (WSP) .............................................................................................. 32 5.3 Conclusions ............................................................................................................................ 35 6. Valuation of nutrient cycling (food and fibre) for crop production .................... 36 6.1 Technical Review.................................................................................................................... 36 6.2 Supporting Crop Production.................................................................................................... 38 6.3 Valuation of Nutrient Cycling................................................................................................... 46 6.4 Conclusions ............................................................................................................................ 47 7. Supporting Construction – Accessibility and Soil Handleability in Relation to Particular Soil Types/Situations ....................................................................... 49 7.1 Technical Review.................................................................................................................... 49 7.2 Valuation of Supporting Construction...................................................................................... 51 7.3 Economic Analysis.................................................................................................................. 51 7.4 Conclusion.............................................................................................................................. 51 Economic Valuation of Soil Functions Phase 1: Literature Review and Method Development 8. Natural Attenuation of Pollution/Contamination and Contaminated Soil Remediation ........................................................................................................... 53 8.1 Technical Review.................................................................................................................... 53 8.2 Natural Attenuation of Industrial Pollutants............................................................................. 53 8.3 Natural Attenuation of Diffuse Pollution .................................................................................. 54 8.4 Economic Analysis.................................................................................................................. 63 8.5 Summary and Conclusions..................................................................................................... 66 9. Archaeological and Landscape Heritage Protection........................................... 69 9.1 Technical Review.................................................................................................................... 69 9.2 Valuation of Archaeological Site/Artefact Protection............................................................... 69 9.3 Factors that Affect Archaeological Site/Artefact Protection..................................................... 71 9.4 Conclusions ............................................................................................................................ 71 10. Support for Ecological Habitat and Biodiversity ................................................. 73 10.1 Technical Review.................................................................................................................... 73 10.2 Valuation of Support for Ecological Habitat and Biodiversity................................................... 76 10.3 Conclusions ............................................................................................................................ 78 11. Conclusions ..........................................................................................................
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