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EG&S
Ecological Goods and Services
Question | Answer |
---|---|
Why have EG&S Policy | Farmers are paid for market goods but rarely for public goods. If not paid may overuse resources and under-supply ecological services |
What are examples of EG&S? | Scenic views, riparian areas, soil fertility, wildlife habitat, GHG sequestration |
What are some potential unintended consequences of EG&S policy? | Overpayment, capitalization of benefits into the land value. |
Why is there a market failure for EG&S? | The the goods are not marketable and not tradable. There are no supply and demand mechanisms |
Arguments against EG&S | It justifies subsidizing agriculture, which developing nations are generally against because it makes them less competitive. |