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Demand and supply of agricultural ES: towards benefit-based policy

Annika Tienhaara, Emmi Haltia, Eija Pouta, Kyösti Arovuori, Ioanna Grammatikopoulou, Antti Miettinen, Kauko Koikkalainen, Heini Ahtiainen and Janne Artell ()

European Review of Agricultural Economics, 2020, vol. 47, issue 3, 1223-1249

Abstract: In order to integrate ecosystem services (ES) in designing agri-environmental policy, we investigated both the demand for, and supply of, ES from agricultural environments in Finland. Using the discrete choice experiment method, we measured citizens' willingness to pay (WTP) for four different ES and analysed farmers' compensation request (willingness to accept [WTA]) for producing these services. Biodiversity and water quality gathered the highest WTA of farmers, but also the highest WTP of citizens. Overall, the average WTA exceeded the WTP for almost all attributes and levels, but 20–27 per cent of farmers were willing to produce the ES with the compensation lower than citizens' WTP.

Keywords: agriculture; benefit-based agri-environmental policy; ecosystem services; choice experiment (search for similar items in EconPapers)
Date: 2020
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European Review of Agricultural Economics is currently edited by Christoph Weiss, Thomas Heckelei and Paolo Sckokai

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