Nature Based Solutions for Climate Adaptation - Paying Farmers for Flood Control

Marianne Zandersen, Jakob Stoktoft Oddershede, Anders Branth Pedersen, Helle Ørsted Nielsen and Mette Termansen

Ecological Economics, 2021, vol. 179, issue C

Abstract: Climate change is expected to lead to more frequent and severe fluvial flood events in Northern Europe. Nature Based Solutions are increasingly recognised as a natural insurance against flood risks in vulnerable areas. This requires collaboration at landscape scale between providers and beneficiaries of flood control. In particular, mechanisms to incentivise owners of land could potentially offer cost-effective ways to reduce damage to urban infrastructure. We conduct a choice experiment among farmers located in the vicinity of a river to assess their willingness to accept a contract that would allow a local Danish municipality to periodically flood farmland to reduce urban flood risks. Results indicate that farmers on average are hesitant about entering into abatement contracts, especially if they have prior experience of crop losses due to extreme weather events. If they were to agree on a contract they would prefer a separate compensation for lost crops; a collective negotiation and higher rather than lower yearly payments. Surprisingly, data did not show a significant preference for or against a requirement to grow flood resistant crops. The results suggest that a contract with a separate damage compensation and based on individual negotiation would on average require an annual payment of 290Euro/ha for farmers with no prior experience of crop losses and 469Euro/ha for farmers who have experienced crop losses. The paper discusses the potentials and limitations of landscape scale Nature Based Solutions for climate adaptation.

Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolec:v:179:y:2021:i:c:s0921800919301624

DOI: 10.1016/j.ecolecon.2020.106705

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