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Policy mechanism choice for environmental management by non-commercial "lifestyle" rural landholders

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Author Info

  • Pannell, David J.
  • Wilkinson, Roger

Abstract

For some environmental assets in rural areas, the landholders who are having the biggest impact are people with small holdings and an emphasis on lifestyle rather than commercial gains from their land. This paper aims to better understand the motivations and likely responses to policy for lifestyle landholders in Australia, in order to assess which policy mechanisms, if any, are likely to be most efficiently used to influence their land management. Through face-to-face interviews, we find that lifestyle landholders have important differences from commercial farmers, including much smaller properties, a stronger interest in environmental outcomes, a lack of land-management skills and a lack of time for land-management activities. From the perspective of environmental policy programs, engaging with lifestyle landholders is likely to involve higher transaction costs, and there are likely to be higher learning and transition costs per unit area. A framework for selection of policy tools is modified to take account of these findings. It is concluded that the prospects for worthwhile public investments in land-use changes by lifestyle landholders are lower than for commercial landholders.

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Bibliographic Info

Article provided by Elsevier in its journal Ecological Economics.

Volume (Year): 68 (2009)
Issue (Month): 10 (August)
Pages: 2679-2687

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Handle: RePEc:eee:ecolec:v:68:y:2009:i:10:p:2679-2687

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Web page: http://www.elsevier.com/locate/ecolecon

Related research

Keywords: Smallholders Conservation Land use Adoption Incentives Extension Technology change Motivation Goals;

References

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  1. Anonymous, 2005. "Trends in Australian Agriculture," Commission Research Papers 31903, Productivity Commission.
  2. Anonymous, 2005. "Australian Pigmeat Industry," Inquiry Reports 31893, Productivity Commission.
  3. David J. Pannell, 2009. "Technology change as a policy response to promote changes in land management for environmental benefits," Agricultural Economics, International Association of Agricultural Economists, vol. 40(1), pages 95-102, 01.
  4. David J. Pannell, 2008. "Public Benefits, Private Benefits, and Policy Mechanism Choice for Land-Use Change for Environmental Benefits," Land Economics, University of Wisconsin Press, vol. 84(2), pages 225-240.
  5. Ceddia, M.G. & Heikkil, J. & Peltola, J., 2009. "Managing invasive alien species with professional and hobby farmers: Insights from ecological-economic modelling," Ecological Economics, Elsevier, vol. 68(5), pages 1366-1374, March.
  6. Pannell, David J., 2001. "Dryland salinity: economic, scientific, social and policy dimensions," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 45(4), December.
  7. Marsh, Sally P. & Pannell, David J. & Lindner, Robert K., 2004. "Does agricultural extension pay?: A case study for a new crop, lupins, in Western Australia," Agricultural Economics, Blackwell, vol. 30(1), pages 17-30, January.
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Citations

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Cited by:
  1. Pannell, David J. & Roberts, Anna M. & Park, Geoff & Alexander, Jennifer, 2013. "Improving environmental decisions: A transaction-costs story," Ecological Economics, Elsevier, vol. 88(C), pages 244-252.
  2. Polyakov, Maksym & Pannell, David J. & Pandit, Ram & Tapsuwan, Sorada & Park, Geoff, 2012. "Valuing environmental assets on rural lifestyle properties," Working Papers 126941, University of Western Australia, School of Agricultural and Resource Economics.
  3. Pannell, David J. & Roberts, Anna M. & Park, Geoff & Alexander, Jennifer, 2012. "Improving environmental decisions: a transaction-costs story," Working Papers 125851, University of Western Australia, School of Agricultural and Resource Economics.
  4. Pannell, David J. & Roberts, Anna M., 2010. "Australia’s National Action Plan for Salinity and Water Quality: a retrospective assessment," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 54(4), December.

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