Coasian payments for agricultural external benefits - an empirical cross-section analysis

Franz Hackl (), Martin Halla and Gerald Pruckner

No 2005-11, Economics working papers from Department of Economics, Johannes Kepler University Linz, Austria

Abstract: This paper deals with a cross section analysis of local compensation payments to farmers for their provision of landscape amenities in alpine tourist communities. These payments can be interpreted as the outcomes of Coasian negotiations. Based on Austrian data we empirically identify the underlying determinants of the negotiating process. The probability for a positive negotiation outcome depends on politico-economic factors such as municipal revenues per resident and the share of votes for distinct parties in parliamentary elections. Whereas benefits associated with landscape amenities also play an important role transaction costs of bargaining are of minor relevance. If the variety of the countryside seems to be endangered tourist communities start compensating their farmers for landscape-enhancing activities. Local subsidy schemes supplement European Union and national policies in support of rural areas as they internalize positive agricultural externalities.

Keywords: Coase Theorem; Coasian payments; external benefits of agriculture; landscape-enhancing agricultural services (search for similar items in EconPapers)
JEL-codes: D62 Q1 Q26 (search for similar items in EconPapers)
Date: 2005-12
New Economics Papers: this item is included in nep-agr
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.econ.jku.at/papers/2005/wp0511.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:jku:econwp:2005_11

Access Statistics for this paper

More papers in Economics working papers from Department of Economics, Johannes Kepler University Linz, Austria Contact information at EDIRC.
Bibliographic data for series maintained by René Böheim ().