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Integrating spatial econometric information and optimisation models to improve Agri-Environmental payment design: A resource allocation model for Emilia-Romagna (Italy)

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  • Daniele, Vergamini
  • Viaggi, Davide
  • Raggi, Meri

Abstract

The efficiency and cost-effectiveness of the European Agri-Environmental Measures (AEMs) depends on policy design variables, spatial targeting and participant selection process. This paper develops an optimisation model jointly aimed at optimal AEMs targeting and payment setting. The model tests the potential integration of spatial information into optimisation models simulating spatially differentiated payment mechanism for AEMs in Emilia-Romagna (Italy). The results highlight a significant cost saving with differentiated payments. Spatial information modelled as a proxy of the willingness to accept the payment supports the fine-tuning of the model. The study highlights the importance of using the information on spatial differentiation in optimisation tools searching for optimal incentivecompatible targeting.

Suggested Citation

  • Daniele, Vergamini & Viaggi, Davide & Raggi, Meri, 2017. "Integrating spatial econometric information and optimisation models to improve Agri-Environmental payment design: A resource allocation model for Emilia-Romagna (Italy)," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 0(Issue 2), July.
    • Handle: RePEc:ags:aergaa:330607
    DOI: 10.22004/ag.econ.330607
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    Cited by:

    1. Bartolini, Fabio & Vergamini, Daniele & Longhitano, Davide & Povellato, Andrea, 2021. "Do differential payments for agri-environment schemes affect the environmental benefits? A case study in the North-Eastern Italy," Land Use Policy, Elsevier, vol. 107(C).
    2. Fabio Bartolini & Daniele Vergamini, 2019. "Understanding the Spatial Agglomeration of Participation in Agri-Environmental Schemes: The Case of the Tuscany Region," Sustainability, MDPI, vol. 11(10), pages 1-18, May.
    3. Matteo Olivieri & Maria Andreoli & Daniele Vergamini & Fabio Bartolini, 2021. "Innovative Contract Solutions for the Provision of Agri-Environmental Climatic Public Goods: A Literature Review," Sustainability, MDPI, vol. 13(12), pages 1-22, June.

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    Keywords

    Research Methods/ Statistical Methods;

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