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Payments for environmental services with ecological thresholds: farmers’ preferences for a sponsorship bonus

Author

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  • Fanny Le Gloux

    (SMART - Structures et Marché Agricoles, Ressources et Territoires - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Rennes Angers - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement)

  • Carole Ropars-Collet

    (SMART - Structures et Marché Agricoles, Ressources et Territoires - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Rennes Angers - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement)

  • Alice Issanchou

    (SMART - Structures et Marché Agricoles, Ressources et Territoires - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Rennes Angers - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement)

  • Pierre Dupraz

    (SMART - Structures et Marché Agricoles, Ressources et Territoires - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Rennes Angers - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement)

Abstract

Designing incentives for agri-environmental public good provision with threshold effects calls for payment mechanisms favouring critical mass participation and continuity of commitments at the landscape scale. We conducted a choice experiment to test the acceptability of a bonus in a scheme for improving river water quality in France. We introduce a sponsorship bonus each time the farmer convinces a peer into entering the scheme, which can be combined with a collective result bonus per hectare if the river reaches a higher step on the water quality scale. We consider the involvement of local financers could increase the willingness to pay beyond opportunity costs and income foregone and propose higher levels of payment than agri-environmental schemes. Results suggest a sponsorship bonus on its own is cost-effective. We characterize respondents' heterogeneity and identify three groups based on choice patterns: (i) "pro-environment individualists", (ii) "management change averse" farmers, and (iii) "pro-incentive" farmers.

Suggested Citation

  • Fanny Le Gloux & Carole Ropars-Collet & Alice Issanchou & Pierre Dupraz, 2024. "Payments for environmental services with ecological thresholds: farmers’ preferences for a sponsorship bonus," Post-Print hal-04523614, HAL.
    • Handle: RePEc:hal:journl:hal-04523614
    DOI: 10.1080/09640568.2024.2303738
    Note: View the original document on HAL open archive server: https://hal.inrae.fr/hal-04523614
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    References listed on IDEAS

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    1. Anastasio J. Villanueva & Klaus Glenk & Macario Rodríguez-Entrena, 2017. "Protest Responses and Willingness to Accept: Ecosystem Services Providers’ Preferences towards Incentive-Based Schemes," Journal of Agricultural Economics, Wiley Blackwell, vol. 68(3), pages 801-821, September.
    2. Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74(2), pages 132-132.
    3. Matteo Zavalloni & Meri Raggi & Davide Viaggi, 2019. "Agri-environmental Policies and Public Goods: An Assessment of Coalition Incentives and Minimum Participation Rules," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 72(4), pages 1023-1040, April.
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