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Spatial variability Factors of soil formation (Jenny) Climate Organisms Parent material Topography Time We must live with spatial variation – it is unchangeable and irreducible. How can uncertainty of measurements be reduced? What are the implications for cost-effectiveness?.
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Spatial variability • Factors of soil formation (Jenny) • Climate • Organisms • Parent material • Topography • Time • We must live with spatial variation – it is unchangeable and irreducible How can uncertainty of measurements be reduced? What are the implications for cost-effectiveness?
Costs and benefits of reducing uncertainty in accounting for soil carbon credits R. T. Conant, Colorado State University S. Mooney, University of Wyoming K. Gerow, University of Wyoming
Background: Value of C credits • Most producers will require economic incentives to change practices • Money received by producers is a function of price offered for each credit, perceived uncertainty (i.e., discounting) and transaction costs • Both uncertainty and transaction costs are related to verification and sampling
Methods to reduce sample variability • Increase duration between sampling • Aggregate • Alter risk acceptance • Covariance – re-sample same plots • Use spatial autocorrelation • Extrapolate using additional information • Increase # of samples analyzed What are the costs/benefits associated w/ these?
Soil C pool 1. Increase duration between sampling Average Cultivated soil C (top 20cm): 14.5 Mg C ha-1 Accumulation rate (top 20cm): 0.27 Mg C ha-1 yr-1 20cm 2 years change = 3.7% 25 years change = 46.6%
# samples 1. Increase duration between sampling Two potential outcomes: • Decreases the number of samples required for a given precision • Can increase the precision for a given number of samples Either way, income potential increases Question: • Do future earnings justify reduced sampling now?
2. Aggregation Measurement Cost per Credit ($) Mooney, S., J. M. Antle, S. M. Capalbo and K. Paustian. 2004. Influence of Project Scale on the Costs of Measuring Soil C Sequestration. Environmental Management 33 (supplement 1): S252 - S263.
3. Alter risk acceptance • Reducethe standard error • Results in smaller confidence interval
# samples 3. Alter risk acceptance • Reducing the confidence intervals • Higher producer payments • Possible to achieve at low cost • What is the balance between risk and sampling costs?
4. Covariance Has management led to changes over time? Time 1 Time 2 Diff? = f(2(t1-t2) = 2t1 + 2t2 – 2covt1 t2) Implication: Large covt1 t2 small 2(t1-t2) Small 2(t1-t2) likelihood of difference covt1 t2 can be maximized by: ensuring uniform treatments, texture, slope, aspect, etc. re-sampling same location
5. Use spatial autocorrelation • Reducing the confidence intervals • Higher producer payments • Possible to achieve at low cost Mooney, S., K. Gerow, J. Antle, S. Capalbo and K. Paustian. 2005.The Value of Incorporating Spatial Autocorrelation into a Measurement scheme to Implement Contracts for Carbon Credits. Working Paper 2005 – 101. Department of Agricultural and Applied Economics, University of Wyoming
5. Use spatial autocorrelation SWF=spring wheat fallow GRA = grass CSW= continuous spring wheat WWF= winter wheat fallow CWW= continuous winter wheat
6. Extrapolation • No studies that directly examine Krieging to date • Expect that information about spatial autocorrelation will: • Decrease sample size • Decreasing measurement costs • Krieging with additional information is best method of extrapolation (Doberman et al.)
7. Increase number of samples analyzed • Increase # samples analyzed • Decrease sample error • Increase confidence interval • Increase cost If analytical costs fall dramatically (due to LIBS, NIR, EC, etc.) risk/uncertainty can be reduced and producers will be the beneficiaries. Mooney, S., J. M. Antle, S. M. Capalbo and K. Paustian. 2004. Design and Costs of a Measurement Protocol for Trades in Soil Carbon Credits. Canadian Journal of Agricultural Economics. 52(3):257-287
Conclusions • Soil variation is irreducible • There are several things we can do to increase statistical confidence in our measurements, thus reducing risk/uncertainty and increasing returns to producers • Improved analytical techniques could be a significant contributor in the future.