Designing Agri-Environmental Schemes to cope with uncertainty

Margaux Lapierre (), Gwenolé Le Velly, Douadia Bougherara, Raphaële Préget () and Alexandre Sauquet
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Margaux Lapierre: CEE-M - Centre d'Economie de l'Environnement - Montpellier - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro - Montpellier SupAgro - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement

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Abstract: One of the factors that discourages farmers from enrolling in agro-environmental schemes (AES) is the uncertainty of the costs and benefits associated with the adoption of the new practices. In this study, we distinguish between the "internal uncertainty" that is related to the characteristics of the farmer and his/her parcels and "external uncertainty", which is related to the occurrence of external events. We propose three innovations to better account for uncertainty in AES design and test their attractiveness through a choice experiment. We find that proposing contracts that allow suspending the conditions of the contract for one year enhances participation.

Keywords: Agri-environmental Measures; Uncertainty; Flexibility; Choice Experiment; Herbicides; Cover Crops; Winegrowing (search for similar items in EconPapers)
Date: 2021-10-12
New Economics Papers: this item is included in nep-agr, nep-env and nep-exp
Note: View the original document on HAL open archive server: https://hal.inrae.fr/hal-03349026v2
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Citations: View citations in EconPapers (2)

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Related works:
Journal Article: Designing agri-environmental schemes to cope with uncertainty (2023)
Working Paper: Designing Agri-Environmental Schemes to cope with uncertainty (2023)
Working Paper: Designing Agri-Environmental Schemes to cope with uncertainty (2023)
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