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Modeling Costs and Benefits of Biodegradable Mulches

Modeling Costs and Benefits of Biodegradable Mulches. SCRI BDM Economics Working Group Srinivasa Ponnaluru. June 1, 2011. Introduction. Agricultural production results in an array of emissions. Mulch residues in soil Toxic fumes from burning of plastics

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Modeling Costs and Benefits of Biodegradable Mulches

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  1. Modeling Costs and Benefits of Biodegradable Mulches SCRI BDM Economics Working Group Srinivasa Ponnaluru June 1, 2011

  2. Introduction • Agricultural production results in an array of emissions. • Mulch residues in soil • Toxic fumes from burning of plastics • Build up of pollutants in soil, and environment can affect production. • Stock of pollutants changes over time due to • Additional loads (mulch usage) • Decay of existing stocks

  3. Model • Net benefits can be specified as: B –benefits TC –total cost of production D –damages from pollutant C –cost of emission control E – current emissions S –stock of pollutant P –price of output Q –quantity of output x –traditional inputs

  4. Costs… • Costs of emission control • Collection, transportation, landfill fees • Costs of production • Input costs, labor, operational costs • Maintenance costs • Wind, hail, flooding damage…

  5. Benefits • Revenues from sale of produce • Price premiums • Early maturity • Higher yield • Higher quality • Longer shelf life • Reduced plant protection chemical usage • Lower pest and disease incidence (...?) • Soil quality changes (…benefits…?) • Irrigation water savings (…?)

  6. WA Enterprise Budget: High tunnel Tomato

  7. Variable costs

  8. Variable costs

  9. Fixed costs

  10. Comparison per 1000 ft2

  11. Summary • Specification of damage function • Data needs for estimating price premiums • Enterprise budgets • Open field tomato • High tunnel tomato

  12. Thank You

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