PESERA-DESMICE: Land management evaluation model

Table of Contents

1. Authors
2. Summary
3. Acronyms
4. Introduction
5. Coarse-scale model description
   1. The PESERA model: summary
   2. Alternative approaches to assessing soil erosion
   3. Process representation in PESERA
   4. Extensions of PESERA
   5. Adapting PESERA
   6. Assessment at catchment scales
6. Cost-effectiveness modelling
   1. Step 1
   2. Step 2
   3. Step 3
   4. Step 4
   5. Step 5
   6. Step 6
   7. Step 7
   8. Step 8
   9. Step 9
   10. Step 10
   11. Step 11
   12. Step 12
7. Agent-Based modelling in Spain
   1. Phase 1
   2. Phase 2
   3. Phase 3
   4. Phase 4
   5. Phase 5
   6. Phase 6
8. Input-Output modelling in Spain
   1. Model construction
   2. Scenario analyses
9. References

Step 11

Step 11: Including wider economic effects in CBA

From the societal point of view, undertaking remediation measures may be valued differently than for individual land users. In this step we will include selected off-site effects (e.g. reservoir sedimentation) and, where appropriate (e.g. for sites that have reported reforestation as a technology), extend the time horizon of the CBA to account for effects beyond the immediate interest of the land user. A (reduced) social discount rate would need to be adopted as well. Off-site effects can be considered by valuing effects on areas of particular economic interest/vulnerability, currently limited to reservoir sedimentation. To account for reservoir sedimentation in the CBA, a valuation based on estimated costs/benefits needs to be made, evaluating the combined effect of technologies adopted on the sedimentation rate compared to the without case. The without case situation defines the actual lifetime of the reservoir. We will assume that re-investment will be necessary once the reservoir capacity is reduced (e.g. by more than halve). The combined technologies in case of adoption may prolong the time before re-investment is needed. Entering the re-investment cost values in the cashflow in the concerning year will make a contribution to the NPV. Besides extending the CBA with the above effects, economic prices of inputs and outputs will have to be used instead of farm gate prices (i.e. possible subsidies to land owners should be subtracted).

Data sources: 1) output from previous steps (2, 6, 9, 10); 2) economic prices of (farm) inputs; 3) economic prices of off-site and next generation effects.

Intermediate product: a CBA including selected wider economic effects for the study area.