In this paper I outline the basic concepts and measurement issues that arise in estimating the supply side of ecosystem services (ES) for policy design. By the supply of ES, I mean the additional ES that can be obtained by providing farmers with incentives to change their land use and management practices in ways that increase ES above and beyond the level that would have been obtained without such incentives. I present an example that illustrates the use of a “minimum-data” approach to ES service supply modeling that can provide information on a timely basis to support policy decision making.
Read article here: Modeling Agroecosystem Services for Policy Analysis (pdf). By John Antle, Department of Agricultural Economics and Economics, Montana State University, 2007