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Payments by modelled results: A novel design for agri-environmental schemes

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  • Bartkowski, Bartosz
  • Droste, Nils
  • Ließ, Mareike
  • Sidemo-Holm, William
  • Weller, Ulrich
  • Brady, Mark V.

Abstract

From a theoretical point of view, result-based agri-environmental payments are clearly preferable to action-based payments. However, they suffer from two major practical disadvantages: costs of measuring the results and payment uncertainty for the participating farmers. In this paper, we propose an alternative design to overcome these two disadvantages by means of modelling (instead of measuring) the results. We describe the concept of agri-environmental payments by modelled results (PAMR), including a hypothetical example of payments for the protection and enhancement of soil functions. We offer a comprehensive discussion of the relative advantages and disadvantages of PAMR, showing that it not only unites most of the different advantages of result-based and action-based schemes, but also adds two new advantages: the potential to address trade-offs among multiple policy objectives and management for long-term environmental effects. We argue that PAMR would be a valuable addition to the agri-environmental policy toolbox in the EU and beyond, while also reflecting recent advancements in agri-environmental modelling.

Suggested Citation

  • Bartkowski, Bartosz & Droste, Nils & Ließ, Mareike & Sidemo-Holm, William & Weller, Ulrich & Brady, Mark V., 2021. "Payments by modelled results: A novel design for agri-environmental schemes," Land Use Policy, Elsevier, vol. 102(C).
    • Handle: RePEc:eee:lauspo:v:102:y:2021:i:c:s0264837720325680
    DOI: 10.1016/j.landusepol.2020.105230
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    Cited by:

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    2. Elmiger, By Noëmi & Finger, Robert & Ghazoul, Jaboury & Schaub, Sergei, 2023. "Biodiversity indicators for result-based agri-environmental schemes – Current state and future prospects," Agricultural Systems, Elsevier, vol. 204(C).
    3. Markova-Nenova, Nonka & Engler, Jan O. & Cord, Anna F. & Wätzold, Frank, 2023. "A Cost Comparison Analysis of Bird-Monitoring Techniques for Result-Based Payments in Agriculture," MPRA Paper 116311, University Library of Munich, Germany.
    4. Tyllianakis, Emmanouil & Martin-Ortega, Julia, 2021. "Agri-environmental schemes for biodiversity and environmental protection: How we are not yet “hitting the right keys”," Land Use Policy, Elsevier, vol. 109(C).
    5. Aleksandra Pawłowska & Renata Grochowska, 2021. "“Green” Transformation of the Common Agricultural Policy and Its Impact on Farm Income Disparities," Energies, MDPI, vol. 14(24), pages 1-15, December.
    6. Massfeller, Anna & Meraner, Manuela & Hüttel, Silke & Uehleke, Reinhard, 2022. "Farmers' acceptance of results-based agri-environmental schemes: A German perspective," Land Use Policy, Elsevier, vol. 120(C).
    7. Laporta, Lia & Domingos, Tiago & Marta-Pedroso, Cristina, 2021. "It's a keeper: Valuing the carbon storage service of Agroforestry ecosystems in the context of CAP Eco-Schemes," Land Use Policy, Elsevier, vol. 109(C).

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    More about this item

    Keywords

    Agriculture; Agri-environmental and climate measures; Environmental modelling; Governance; Incentives; Outcome; Payment-by-results; Performance; Policy implementation;
    All these keywords.

    JEL classification:

    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • Q24 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Land
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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