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Land Heterogeneity, Agricultural Income Forgone and Environmental Benefit: An Assessment of Incentive Compatibility Problems in Environmental Stewardship Schemes

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  • Rob Fraser

Abstract

"This paper examines the issue of incentive compatibility within environmental stewardship schemes, where incentive payments to farmers to provide environmental goods and services are based on foregone agricultural income. The particular focus of the paper is land heterogeneity, either of agricultural or environmental value, leading to divergence between the actual and socially optimal level of provision of environmental goods and services. Given land heterogeneity, such goods and services are likely to be systematically over- or under-provided in response to a flat rate payment for income foregone." Copyright (c) 2008 The Author. Journal compilation (c) 2008 The Agricultural Economics Society.

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Journal of Agricultural Economics.

Volume (Year): 60 (2009)
Issue (Month): 1 ()
Pages: 190-201

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Handle: RePEc:bla:jageco:v:60:y:2009:i:1:p:190-201

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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0021-857X

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References

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  1. D. Roberts & J. Froud & R. W. Fraser, 1996. "Participation In Set Aside: What Determines The Opting In Price?," Journal of Agricultural Economics, Wiley Blackwell, vol. 47(1-4), pages 89-98.
  2. Hild Rygnestad & Rob Fraser, 1996. "Land Heterogeneity And The Effectiveness Of Cap Set-Aside," Journal of Agricultural Economics, Wiley Blackwell, vol. 47(1-4), pages 255-260.
  3. R. Fraser, 1993. "Set-Aside Premiums And The May 1992 Cap Reforms," Journal of Agricultural Economics, Wiley Blackwell, vol. 44(3), pages 410-417.
  4. Rob Fraser & Hild Rygnestad, 1999. "An Assessment of the Impact of Implementing the European Commission's "Agenda 2000" Cereal Proposals for Specialist Wheatgrowers in Denmark," Journal of Agricultural Economics, Wiley Blackwell, vol. 50(2), pages 328-335.
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Cited by:
  1. Quillerou, Emmanuelle & Fraser, Rob W., 2009. "Adverse Selection in the Environmental Stewardship Scheme: Does the Higher Level Entry Scheme Design Reduce Adverse Selection?," 83rd Annual Conference, March 30-April 1, 2009, Dublin, Ireland 51068, Agricultural Economics Society.
  2. Vincent Martinet, 2012. "Effect of soil heterogeneity on the welfare economics of biofuel policies," EconomiX Working Papers 2012-13, University of Paris West - Nanterre la Défense, EconomiX.
  3. Kuhfuss, Laure & Jacquet, Florence & Preget, Raphaële & Thoyer, Sophie, 2012. "Le dispositif des MAEt pour l’enjeu eau : une fausse bonne idée ?," Revue d'Etudes en Agriculture et Environnement, Editions NecPlus, vol. 93(04), pages 395-422, December.
  4. Huber, Robert & Lehmann, Bernard, 2010. "Economies of Scope in the Agricultural Provision of Ecosystem Services: An Application to a High Cost Production Region," Journal of International Agricultural Trade and Development, Journal of International Agricultural Trade and Development, vol. 59(2).
  5. Sahrbacher, Amanda, 2012. "Impacts of CAP reforms on farm structures and performance disparities: An agent-based approach," Studies on the Agricultural and Food Sector in Central and Eastern Europe, Leib­niz Institute of Agricultural Development in Central and Eastern Europe (IAMO), volume 65, number 65.
  6. Salas, Paula Cordero & Roe, Brian E. & Sohngen, Brent, 2012. "Addressing Additionality in REDD Contracts when Formal Enforcement is Absent," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124505, Agricultural and Applied Economics Association.
  7. Sauer, Johannes & Walsh, John, 2011. "ESS versus NVZ – The Cost-Effectiveness of Command-and-Control versus Agreement Based Policy Instruments," 85th Annual Conference, April 18-20, 2011, Warwick University, Coventry, UK 108963, Agricultural Economics Society.
  8. Glover, Jane, 2011. "Where has all the cream gone: How sustainable is the English dairy supply chain?," 85th Annual Conference, April 18-20, 2011, Warwick University, Coventry, UK 108940, Agricultural Economics Society.

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