b. Development of supply curves for environmental compensation measures on farmland on the example of the Stuttgart Region in Germany

Christian Sponagel, Hans Back, Elisabeth Angenendt and Enno Bahrs

No 308132, Agri-Tech Economics Papers from Harper Adams University, Land, Farm & Agribusiness Management Department

Abstract: Impacts on nature and landscape in Germany must be compensated for in accordance with the Federal Nature Conservation Act. Farmers can participate by voluntarily applying appropriate measures on their land. We used a geodata-based model to analyse environmental compensation measures on arable land from an economic perspective on the example of the Stuttgart Region, a metropolitan area where construction activities and their compensation are huge, exemplary for many European metropolises. In order to estimate a possible realistic potential, the willingness to accept for compensation measures previously determined in a discrete choice experiment with farmers in the Stuttgart region was integrated into the model. The analysis compares the economic viability of current agricultural use with the income generated from the sale of so called ecopoints by supply curve. The results show wide variation in ecopoint potential in spatial terms. The implementation of compensation measures is not economically reasonable, depending on the legal security provided by a land register entry at a price of less than 1.00 € per ecopoint in the Stuttgart city district. In contrast, measures can be implemented economically and on a large scale in surrounding districts for less than 0.60 €, regardless of legal protection. The optimal type of compensation measure from an economic point of view depends on type and land is also important. The model and its results can provide important information for decision-makers in politics, landscape planning and nature conservation.

Keywords: Agribusiness; Agricultural and Food Policy; Agricultural Finance (search for similar items in EconPapers)
Pages: 19
Date: 2020-09-25
New Economics Papers: this item is included in nep-dcm and nep-env
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/308132/files/D ... 2020_09%20upload.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:haaepa:308132

DOI: 10.22004/ag.econ.308132

Access Statistics for this paper

More papers in Agri-Tech Economics Papers from Harper Adams University, Land, Farm & Agribusiness Management Department Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().