Innovative Contract Solutions for the Provision of Agri-Environmental Climatic Public Goods: A Literature Review

Matteo Olivieri, Maria Andreoli, Daniele Vergamini and Fabio Bartolini
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Matteo Olivieri: Department of Agriculture, Food and Agri-Environmental Sciences (DAFE), University of Pisa, 56124 Pisa, Italy
Maria Andreoli: Department of Agriculture, Food and Agri-Environmental Sciences (DAFE), University of Pisa, 56124 Pisa, Italy
Daniele Vergamini: Department of Agriculture, Food and Agri-Environmental Sciences (DAFE), University of Pisa, 56124 Pisa, Italy
Fabio Bartolini: Department of Chemical, Pharmaceutical and Agricultural Sciences (DOCPAS), University of Ferrara, 44121 Ferrara, Italy

Sustainability, 2021, vol. 13, issue 12, 1-22

Abstract: Lack of public funding and environmental deterioration are promoting the search for innovative mechanisms enabling to boost farmers’ provision of agri-environmental climate public goods. This work aims to contribute to the current debate by highlighting the role of innovative contractual solutions through a systematic review of more than 60 articles. The review analyses the potential of result-based and collective contracts as innovative solutions compared to action-based instruments, which are those currently most used. The design of innovative contracts and other mechanisms, e.g., auction and screening contracts, can reduce the policy failures due to asymmetric information. The paper emphasises the trade-off between an accurate design of agri-environmental schemes and the related administrative burden, highlighting the need for a better understanding of the role of mechanisms design into the policy cycle. Some new instruments were not analysed in the review, due to the scarcity of literature, and there is the need of more case studies providing information on the effectiveness of instruments when implemented in different contexts. We fill the gap in empirical evidence through a SWOT analysis that evaluates the effectiveness and acceptability of innovative instruments for policy purposes.

Keywords: agri-environmental schemes; result-based; action-based; collective contract; asymmetric information; common agricultural policy; effectiveness; policy failures; mechanism design (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

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