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Economics of land degradation
contribution to soil security in
Eurasia
Pavel Krasilnikov, Oleg Makarov, Alexey Sorokin,
Alisher Mirzabaev, Anton Strokov, Sergey Kiselev
Moscow State University
Global food security is jeopardized by the increasing
land degradation, which is especially dangerous in the
poorest countries of the world
Evident hotspots are recognized in Africa, South-Eastern
Asia and Central America
Northern Eurasia has been considered as a relatively
stable territory with minor impact of land degradation
However, soil degradation is active in Russia, as it is driven
by a complex of natural and socio-economic factors
Processes of degradation Area, million ha
Water erosion and deflation ~ 70
Various degrees of salinity > 40
Excessive stoniness 12
Desertification > 1
Low organic carbon content 56
Gullies 1.7
Wind-blown sands 6.3
Processes of soil degradation in Russia
USSR
• Economical situation: low
productivity , residual
principle of finding
• Social situation:
discrimination of rustic
population, poor rural
infrastructure
• Technological situation:
weakness of technology, low
priority of agrotechnology
for the state
• Economical situation: economic
freedom, weakness of
producers, “wild market”
• Social situation: social freedom,
weak social protection, “social
desertification”
• Technological situation:
dependence on imported
technologies, the loss of
scientific background; some
promising “growth points”
Land use in the USSR and nowadays Russia
Russian Federation
Economics of Land
Degradation initiative
21 of September 2011 the European
Commission, the German government and the
UNCCD Secretary launched the initiative on
the Economics of land Degradation (ELD)
Conceptual scheme for the assessment of
costs/benefits under action vs. inaction scenarios
Bases and methodology
Methodology: cost of land degradation
• Following Nkonya et al. (2014), we calculated the
costs of land degradation due to land-use and land-
cover change (LUCC) through:
(1)
• where CLUCC = cost of land degradation due to LUCC;
a1= land area of biome 1 being replaced by biome 2;
P1 and P2 are the total economic value (TEV) of
biomes 1 and 2, respectively.
Methodology: the cost of action
• The cost of taking action against land degradation due to LUCC is
given by:
(2)
• where CTAi = cost of restoring high value biome i; ρt = discount
factor of land user; Ai = area of high value biome i that was replaced
by low value biome j; zi = cost of establishing high value biome I; xi =
maintenance cost of high value biome i until it reaches maturity; xj
= productivity of low value biome j per hectare; pj = price of low
value biome j per unit (e.g. ton); t = time in years and T = planning
horizon of taking action against land degradation. The term pjxj
represents the opportunity cost of foregoing production of the low
value biome j being replaced.
Methodology: the cost of inaction
• The cost of inaction will be the sum of annual
losses due to land degradation
(3)
• where CIi = cost of not taking action against
degradation of biome i.
Methodology: cost of action without land use
change
• The social cost and benefit of action against land degradation and
inaction is given by the net present value (NPV) for taking action
against land degradation in year t for the land users planning
horizon T:
(4)
• Where πc
t = NPV; Yc
t = production of direct use provisioning services
when using SLM practices; P= unit price of Yc
t; IVt = indirect use
value; NUt = on-site non-use value; bc
t = off-site positive benefit of
SLM practices ρt = 1+r, r = land user’s discount rate; lmc
t = cost of
SLM practices; cc
t = direct costs of production other than land
management; τc
t = off-site costs of SLM – including use and non-
use costs.
Methodology: cost of inaction without land use
change
• If land user does not take action against land
degradation, the corresponding NPV is given by
(5)
• Where πd
t = NPV when land user uses land degrading
practices. All other variables are as defined in above
but with superscript d indicating land degrading
practices.
• The benefit of taking action against land degradation
is given by
Federal districts of Russian Federation
Far East
Siberian
Ural
North-west
Central
Volga
Southern
North
Caucasus
Federal
districts of
Russia and
European
countries
Rural
population
density,
person/km2
Area of arable
lands, mln ha
Share of
arable lands in
the territory,
%
Availability of
arable lands,
ha/person
Share of
employment
in agriculture
of rural
population, %
Northern FD 1.4 2.4 1.6 1.2 18.9
Finland 5.8 2.3 6.7 1.1 6.0
Central FD 11.0 20.1 32.0 2.9 18.7
Poland 45.6 12.5 38.6 0.8 15.8
Southern FD 16.7 20.4 35.0 2.1 16.7
France 26.0 18.5 33.6 1.3 5.4
Some characteristics of rural lands and agriculture of Federal
districts of Russia and European countries with respectively
similar bioclimatic conditions
Based on Nefedova (2013)
Indicators 1991-1995 2003-2007
Application of organic
fertilizers, mln t (t/ha)
150.1 (1.7) 51.8 (0.9)
Supply of mineral fertilizers,
mln t
4.5 1.5
Application of mineral
fertilizers, kg/ha
35 28
Melioration of acidic soils,
thousand ha
2733 314
Application of phosphorous
fertilizers, thousand ha
1021 39.1
Melioration of Solonetz,
thousand ha
66.2 3.2
Processing of Solonetz,
thousand ha
84 10.1
Agro-chemicals application in Russia
Gordeeva and Romanenko (2008)
Areas of long-term (1982-2006) NDVI decline (with correction of
RF and AF effects and masking saturated NDVI zones) versus
main land cover/use types of the Russian Federation
Federal District
Annual cost of
Land Degradation
in 2002-2010, in
bln USD
Annual cost of
land degradation
per capita
including the
value of the loss
of ecosystem
services, in USD
GDP in 2010,
current bln USD
Land degradation
as a share of GDP
(%), annually
Central 6 157 434 1
Southern 2 144 75 3
Northwestern 17 1232 127 13
Far Eastern 76 11679 68 112
Siberian 61 3111 133 46
Ural 18 1477 165 11
Volga 5 164 184 3
North Caucasian 3 332 29 10
Total 189 1315 1216 16
The costs of land degradation in Federal Districts of Russia
through land-use change, including TEV values
Costs of action vs inaction in Federal Districts of Russia, in bln USD
Federal
District
GDP
in
2010
Annual
TEV of
LD in
2010 vs.
2002, bln
USD
Annual
cost of
LD in
2010 vs
2002, in
USD
Cost of
Action (6
years)
Cost of
Action
(30
years)
The
oppor-
tunity
cost of
action
Cost of
Inaction
(6 years)
Cost of
Inaction
(30
years)
Ratio of
cost of
action /
inaction
Central 434 6 2 14 14 13 43 93 14%
Southern 75 2 0 5 5 5 15 32 16%
North-
Western
127
17 16 81 82 75 161 348 22%
Far
Eastern
68
76 60 279 283 263 720 1 558 17%
Siberian 133 61 44 217 220 201 530 1 147 18%
Ural 165 18 12 77 77 71 164 355 20%
Volga 184 5 2 14 14 12 39 85 15%
North
Caucasian
29
3 1 7 7 6 21 46 14%
Total 1216 189 136 694 702 647 1 693 3 663 18%
Roadmap for the future
• Management:
– Searching for adequate
SLM practices (validation
of WOCAT database)
– from Agriculture to
iGriculture (precision
agriculture, landscape-
adaptive techniques etc.)
Plant et al. (2000)
Roadmap for the future
• Awareness, education,
investment:
– Inform the decision-makers
and general public on the
economic value of soil
degradation
– Include the basics of
economics of land
degradation in university
and extension programs
– Attract investment in SLM
using economic arguments
Roadmap for the future
• Research:
– Downscaling the results of
the research: higher
responsibility for
prediction on a farm-scale
– Quantifying soil
degradation in an
economically sound way
– Establishing monetary
value for most ecosystem
services
Roadmap for the future
• Information:
– Demand for information
on soil dynamics (actual
and retrospective
monitoring)
– Demand for economic
information (not readily
available)
– Demand for mapping of
ecosystem services
related to soils
Conclusions
• All the soil services should
be assessed and expressed
in monetary equivalent
• Initiatives should feed each
other rather than compete
• The approaches developed
in the frames of Global Soil
Security, Economics of
Land Degradation, Global
Soil Partnership and many
others compliment each
other
THANK YOU FOR YOUR ATTENTION
The research was supported by the Russian Science Foundation, project No. 14-38-00023

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Krasilnikov global soil security

  • 1. Economics of land degradation contribution to soil security in Eurasia Pavel Krasilnikov, Oleg Makarov, Alexey Sorokin, Alisher Mirzabaev, Anton Strokov, Sergey Kiselev Moscow State University
  • 2. Global food security is jeopardized by the increasing land degradation, which is especially dangerous in the poorest countries of the world Evident hotspots are recognized in Africa, South-Eastern Asia and Central America
  • 3. Northern Eurasia has been considered as a relatively stable territory with minor impact of land degradation However, soil degradation is active in Russia, as it is driven by a complex of natural and socio-economic factors
  • 4. Processes of degradation Area, million ha Water erosion and deflation ~ 70 Various degrees of salinity > 40 Excessive stoniness 12 Desertification > 1 Low organic carbon content 56 Gullies 1.7 Wind-blown sands 6.3 Processes of soil degradation in Russia
  • 5. USSR • Economical situation: low productivity , residual principle of finding • Social situation: discrimination of rustic population, poor rural infrastructure • Technological situation: weakness of technology, low priority of agrotechnology for the state • Economical situation: economic freedom, weakness of producers, “wild market” • Social situation: social freedom, weak social protection, “social desertification” • Technological situation: dependence on imported technologies, the loss of scientific background; some promising “growth points” Land use in the USSR and nowadays Russia Russian Federation
  • 6. Economics of Land Degradation initiative 21 of September 2011 the European Commission, the German government and the UNCCD Secretary launched the initiative on the Economics of land Degradation (ELD)
  • 7. Conceptual scheme for the assessment of costs/benefits under action vs. inaction scenarios
  • 9. Methodology: cost of land degradation • Following Nkonya et al. (2014), we calculated the costs of land degradation due to land-use and land- cover change (LUCC) through: (1) • where CLUCC = cost of land degradation due to LUCC; a1= land area of biome 1 being replaced by biome 2; P1 and P2 are the total economic value (TEV) of biomes 1 and 2, respectively.
  • 10. Methodology: the cost of action • The cost of taking action against land degradation due to LUCC is given by: (2) • where CTAi = cost of restoring high value biome i; ρt = discount factor of land user; Ai = area of high value biome i that was replaced by low value biome j; zi = cost of establishing high value biome I; xi = maintenance cost of high value biome i until it reaches maturity; xj = productivity of low value biome j per hectare; pj = price of low value biome j per unit (e.g. ton); t = time in years and T = planning horizon of taking action against land degradation. The term pjxj represents the opportunity cost of foregoing production of the low value biome j being replaced.
  • 11. Methodology: the cost of inaction • The cost of inaction will be the sum of annual losses due to land degradation (3) • where CIi = cost of not taking action against degradation of biome i.
  • 12. Methodology: cost of action without land use change • The social cost and benefit of action against land degradation and inaction is given by the net present value (NPV) for taking action against land degradation in year t for the land users planning horizon T: (4) • Where πc t = NPV; Yc t = production of direct use provisioning services when using SLM practices; P= unit price of Yc t; IVt = indirect use value; NUt = on-site non-use value; bc t = off-site positive benefit of SLM practices ρt = 1+r, r = land user’s discount rate; lmc t = cost of SLM practices; cc t = direct costs of production other than land management; τc t = off-site costs of SLM – including use and non- use costs.
  • 13. Methodology: cost of inaction without land use change • If land user does not take action against land degradation, the corresponding NPV is given by (5) • Where πd t = NPV when land user uses land degrading practices. All other variables are as defined in above but with superscript d indicating land degrading practices. • The benefit of taking action against land degradation is given by
  • 14. Federal districts of Russian Federation Far East Siberian Ural North-west Central Volga Southern North Caucasus
  • 15. Federal districts of Russia and European countries Rural population density, person/km2 Area of arable lands, mln ha Share of arable lands in the territory, % Availability of arable lands, ha/person Share of employment in agriculture of rural population, % Northern FD 1.4 2.4 1.6 1.2 18.9 Finland 5.8 2.3 6.7 1.1 6.0 Central FD 11.0 20.1 32.0 2.9 18.7 Poland 45.6 12.5 38.6 0.8 15.8 Southern FD 16.7 20.4 35.0 2.1 16.7 France 26.0 18.5 33.6 1.3 5.4 Some characteristics of rural lands and agriculture of Federal districts of Russia and European countries with respectively similar bioclimatic conditions Based on Nefedova (2013)
  • 16. Indicators 1991-1995 2003-2007 Application of organic fertilizers, mln t (t/ha) 150.1 (1.7) 51.8 (0.9) Supply of mineral fertilizers, mln t 4.5 1.5 Application of mineral fertilizers, kg/ha 35 28 Melioration of acidic soils, thousand ha 2733 314 Application of phosphorous fertilizers, thousand ha 1021 39.1 Melioration of Solonetz, thousand ha 66.2 3.2 Processing of Solonetz, thousand ha 84 10.1 Agro-chemicals application in Russia Gordeeva and Romanenko (2008)
  • 17. Areas of long-term (1982-2006) NDVI decline (with correction of RF and AF effects and masking saturated NDVI zones) versus main land cover/use types of the Russian Federation
  • 18. Federal District Annual cost of Land Degradation in 2002-2010, in bln USD Annual cost of land degradation per capita including the value of the loss of ecosystem services, in USD GDP in 2010, current bln USD Land degradation as a share of GDP (%), annually Central 6 157 434 1 Southern 2 144 75 3 Northwestern 17 1232 127 13 Far Eastern 76 11679 68 112 Siberian 61 3111 133 46 Ural 18 1477 165 11 Volga 5 164 184 3 North Caucasian 3 332 29 10 Total 189 1315 1216 16 The costs of land degradation in Federal Districts of Russia through land-use change, including TEV values
  • 19. Costs of action vs inaction in Federal Districts of Russia, in bln USD Federal District GDP in 2010 Annual TEV of LD in 2010 vs. 2002, bln USD Annual cost of LD in 2010 vs 2002, in USD Cost of Action (6 years) Cost of Action (30 years) The oppor- tunity cost of action Cost of Inaction (6 years) Cost of Inaction (30 years) Ratio of cost of action / inaction Central 434 6 2 14 14 13 43 93 14% Southern 75 2 0 5 5 5 15 32 16% North- Western 127 17 16 81 82 75 161 348 22% Far Eastern 68 76 60 279 283 263 720 1 558 17% Siberian 133 61 44 217 220 201 530 1 147 18% Ural 165 18 12 77 77 71 164 355 20% Volga 184 5 2 14 14 12 39 85 15% North Caucasian 29 3 1 7 7 6 21 46 14% Total 1216 189 136 694 702 647 1 693 3 663 18%
  • 20. Roadmap for the future • Management: – Searching for adequate SLM practices (validation of WOCAT database) – from Agriculture to iGriculture (precision agriculture, landscape- adaptive techniques etc.) Plant et al. (2000)
  • 21. Roadmap for the future • Awareness, education, investment: – Inform the decision-makers and general public on the economic value of soil degradation – Include the basics of economics of land degradation in university and extension programs – Attract investment in SLM using economic arguments
  • 22. Roadmap for the future • Research: – Downscaling the results of the research: higher responsibility for prediction on a farm-scale – Quantifying soil degradation in an economically sound way – Establishing monetary value for most ecosystem services
  • 23. Roadmap for the future • Information: – Demand for information on soil dynamics (actual and retrospective monitoring) – Demand for economic information (not readily available) – Demand for mapping of ecosystem services related to soils
  • 24. Conclusions • All the soil services should be assessed and expressed in monetary equivalent • Initiatives should feed each other rather than compete • The approaches developed in the frames of Global Soil Security, Economics of Land Degradation, Global Soil Partnership and many others compliment each other
  • 25. THANK YOU FOR YOUR ATTENTION The research was supported by the Russian Science Foundation, project No. 14-38-00023