Quantifying non-marketed compost benefits for application in horticulture

Area of Science:

• Agricultural Economics
• Environmental Science
• Horticulture

Background:

• Pro-environmental activities' social benefits are hard to quantify due to non-market values.
• Compost benefits lack market prices, complicating economic valuation.
• This study quantifies non-market benefits of compost in agriculture.

Purpose of the Study:

• To quantify the economic value of non-marketed compost benefits in tree and shrub nursery production.
• To compare the economic benefits of thermophilic and fermentative composting methods.
• To identify key compost benefits contributing to economic value.

Main Methods:

• Applied revealed preference methods to quantify economic values.
• Assessed compost benefits including potting medium, nutrient supply (NPK), plant yield, disease/pest/weed control, and reduced pruning.
• Compared compost produced via aerobic (thermophilic) and static pile inoculated (fermentative) methods.

Main Results:

• Fermentative compost yielded higher total economic value (CAD$385/tonne/year) than thermophilic compost (CAD$192/tonne/year).
• Lower production costs contributed to fermentative compost's higher economic value.
• Improved nursery plant yield and performance represented the largest benefit proportion (75% for thermophilic, 93% for fermentative).

Conclusions:

• Compost use in nurseries provides substantial quantifiable economic benefits.
• Fermentative composting methods appear more economically advantageous than thermophilic methods in this context.
• Further research should explore broader compost benefits and applications in diverse agricultural systems.