The paper examines the possibility of lock-in on the area contracted under an agri-environmental contract in Dutch dairy farming, using a mathematical programming model, and the interaction of these contracts with Dutch national manure policy. Stricter manure policies increase contract participation, since more restrictive N application standards lower the opportunity cost of contracting. If contract payments are halved in a later period, 95 per cent of the contracting farms in the model would like to alter their contracting decision but they do not because of the cost of grassland renewal (switching cost). These farms are locked-in. The model incorporates time, transaction cost and technical and institutional constraints. Oxford University Press and Foundation for the European Review of Agricultural Economics 2008; all rights reserved. For permissions, please email journals.permissions@oxfordjournals.org, Oxford University Press.
Download Info
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. In case of further problems read
the IDEAS help
page. Note that these files are not on the IDEAS
site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Publisher Info
Article provided by Oxford University Press for the Foundation for the European Review of Agricultural Economics in its journal European Review of Agricultural Economics.
Volume (Year): 35 (2008) Issue (Month): 2 (June) Pages: 167-191 Download reference. The following formats are available: HTML
(with abstract),
plain text
(with abstract),
BibTeX,
RIS (EndNote, RefMan, ProCite),
ReDIF