Resource information
The population in New Zealand is expected to increase to over five million by themid 2020’s from the current level of 4.3 million (Statistics New Zealand, 2009). Anincreasing demand for primary produce as a result may put pressure on marginal land tobe farmed. Understanding the economic value of avoided erosion in New Zealand istherefore an important factor in policy making to optimise the soil related activities in theeconomy. Establishing a methodology for estimating the economic value of avoided soilerosion is the first step in assessing the problem. This study uses the future forestscenarios developed by Scion to identify potential afforestation areas and therebycompare the current erosion/sedimentation status under current land-use (non woodyvegetation) with potential future afforestation. The study aims to quantify the incrementalpublic and private net benefits from the change in scenario. The notion has come underdifferent headings in the literature, such as on-site and off-site erosion effects or sedimentand soil erosion effects, all of which recognize the importance of separation of effects toavoid double-counting. The separation into public and private benefits and costs in thiscase, while avoiding double-counting, will also help identify appropriate policy instrumentsto avoid soil erosion damage using the private and public net benefit framework (Pannell,2008).
