Payments for environmental services with provision thresholds: farmers’ preferences for a conditional bonus

Fanny Le Gloux, Pierre Dupraz, Alice Issanchou and Carole Ropars-Collet

No 321177, 96th Annual Conference, April 4-6, 2022, K U Leuven, Belgium from Agricultural Economics Society - AES

Abstract: The effectiveness of payment schemes for delivering agri-environmental public goods with provision thresholds (biodiversity, water quality) depends on reaching enough farmland enrolment at the landscape scale. Supporting the development of collaborative approaches with a financial bonus conditioned to a collective element on top of an individual basic payment is a promising way to favour participation and continuity of environmental commitments in an area. However, little is known on farmers’ attitudes towards such mixed-payment mechanisms. Using a choice experiment, we measure farmers’ preferences towards an individual bonus for sponsoring peers, which can be combined with a collective bonus for improving the ecological quality of rivers in northwestern France. Applying a mixed logit model, we find that respondents have a positive willingness to accept contracts with a sponsor bonus, but a negative willingness to accept a sponsor bonus combined with a bonus for reaching a collective environmental objective. We characterize respondents’ heterogeneity with a latent class model and identify 3 different attitudes towards the bonus options: (i) negative preferences for both, particularly for the combined bonus, (ii) indifference, (iii) positive preferences for both, even higher for the combined bonus.

Keywords: Agricultural and Food Policy; Agricultural Finance; Environmental Economics and Policy (search for similar items in EconPapers)
Pages: 18
Date: 2022-04
New Economics Papers: this item is included in nep-agr, nep-dcm, nep-dem and nep-env
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/321177/files/F ... r_Le_Gloux_et_al.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:aesc22:321177

DOI: 10.22004/ag.econ.321177

Access Statistics for this paper

More papers in 96th Annual Conference, April 4-6, 2022, K U Leuven, Belgium from Agricultural Economics Society - AES Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().