Payment for Ecosystem Service for Carbon Credits from Italian Olive Groves. Some Issues Regarding the Mode of Payment

Silvia Coderoni, Davide Longhitano and Adele Vinci

International Journal of Food and Agricultural Economics (IJFAEC), 2014, vol. 02, issue 4, 18

Abstract: In Italy, olive farming is one of the most interesting examples of carbon sink in agricultural soils. The olive agro-ecosystems can in fact ensure effective action in CO2 fixation encouraging the process of carbon storage on the organic matter of the soil. Starting from the assumption that a different and more “carbon oriented” management of Italian olive groves system could represent a promising way to increase the carbon stored in agricultural land, this paper explores the possibility to implement a Payment for Ecosystem Services (PES) scheme to increase the provision of carbon sink by olive groves. The analysis focuses on the definition of the sealable ecosystem service, according to the actual policy framework and on the mode of payment that could be established. Results, suggest that an output-based payment, though more environmentally efficient, could not be enough to incentivise farmers to join the PES, as the payment per hectare might be lower using this approach.

Keywords: Agribusiness; Agricultural Finance; Crop Production/Industries; Financial Economics; Political Economy (search for similar items in EconPapers)
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:ags:ijfaec:190812

DOI: 10.22004/ag.econ.190812

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