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Coasian payments for agricultural external benefits - an empirical cross-section analysis

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This paper deals with a cross section analysis of local compensation payments to farmers for their provision of landscape amenities in alpine tourist communities. These payments can be interpreted as the outcomes of Coasian negotiations. Based on Austrian data we empirically identify the underlying determinants of the negotiating process. The probability for a positive negotiation outcome depends on politico-economic factors such as municipal revenues per resident and the share of votes for distinct parties in parliamentary elections. Whereas benefits associated with landscape amenities also play an important role transaction costs of bargaining are of minor relevance. If the variety of the countryside seems to be endangered tourist communities start compensating their farmers for landscape-enhancing activities. Local subsidy schemes supplement European Union and national policies in support of rural areas as they internalize positive agricultural externalities.

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Paper provided by Department of Economics, Johannes Kepler University Linz, Austria in its series Economics working papers with number 2005-11.

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Date of creation: Dec 2005
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Handle: RePEc:jku:econwp:2005_11

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Keywords: Coase Theorem; Coasian payments; external benefits of agriculture; landscape-enhancing agricultural services;

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  1. Franz Hackl & Gerald Pruckner, 1997. "Towards More Efficient Compensation Programmes for Tourists' Benefits From Agriculture in Europe," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 10(2), pages 189-205, September.
  2. Steven E. Barkan, 2004. "Explaining Public Support for the Environmental Movement: A Civic Voluntarism Model," Social Science Quarterly, Southwestern Social Science Association, vol. 85(4), pages 913-937.
  3. Lori M. Hunter & Alison Hatch & Aaron Johnson, 2004. "Cross-National Gender Variation in Environmental Behaviors," Social Science Quarterly, Southwestern Social Science Association, vol. 85(3), pages 677-694.
  4. John List, 2004. "Young, selfish, and male: Field evidence of social preferences," Natural Field Experiments 00298, The Field Experiments Website.
  5. Pruckner, Gerald J, 1995. "Agricultural Landscape Cultivation in Austria: An Application of the CVM," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 22(2), pages 173-90.
  6. Nowell, Clifford & Tinkler, Sarah, 1994. "The influence of gender on the provision of a public good," Journal of Economic Behavior & Organization, Elsevier, vol. 25(1), pages 25-36, September.
  7. Bram Cadsby, C. & Maynes, Elizabeth, 1998. "Gender and free riding in a threshold public goods game: Experimental evidence," Journal of Economic Behavior & Organization, Elsevier, vol. 34(4), pages 603-620, March.
  8. Brown-Kruse, Jamie & Hummels, David, 1993. "Gender effects in laboratory public goods contribution : Do individuals put their money where their mouth is?," Journal of Economic Behavior & Organization, Elsevier, vol. 22(3), pages 255-267, December.
  9. Solow, John L. & Kirkwood, Nicole, 2002. "Group identity and gender in public goods experiments," Journal of Economic Behavior & Organization, Elsevier, vol. 48(4), pages 403-412, August.
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