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HELM TALKS: FARMING Lecture 3

Dieter Helm's lecture series on farming.

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HELM TALKS: FARMING Lecture 3

  1. 1. THEMES • Defining public goods • Alternative delivery mechanisms • Providing the data and accreditation • Scale of the opportunities
  2. 2. DEFINING PUBLIC GOODS • Technically: non-excludable & non-rival • Public goods = public interest • Food and carbon are private goods • Agricultural public goods are largely environmental • Food security has public good elements, but value is low • Water services, flood prevention, biodiversity, amenity and health benefits all count
  3. 3. ALTERNATIVE DELIVERY MECHANISMS HLS Countryside schemes Farm agents Building in enhancements Reverse auction allocations CSO model Incorporates carbon Regulation and farm agreements Auctions & trading platforms
  4. 4. AUCTION MODEL • Water services (pollution reduction measures) • Biodiversity gains • Acess & recreation • Trees • Recreation • Etc etc etc Cost and value of enhancement flows Multiple natural capital revenue flows Carbon offset priceCarbon offsets
  5. 5. DATA & ACCREDITATION Baseline NATCAP Hypothetical enhancements Re-estimated baseline NATCAP Cost of provision Bid into auction Accreditation of assets
  6. 6. DATA SOURCES • Satellite: 20 sq. metre resolution • + drones = high level resolution • + soil data • + biodiversity data sets (plants, birds, invertebrates, mammals) • + drill bit data • +++ greater + greater resolution
  7. 7. SCALE OF OPPORTUNITY • £3 billion fixed budget for allocation in short term • Most efficient enhancements first • Carbon offset market augments public goods payments – mixed revenue flows • New future for marginal land, especially in the uplands.

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