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Farmers’ preferences toward an outcome‐based payment for ecosystem service scheme in Japan

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  • Katsuya Tanaka
  • Nicholas Hanley
  • Laure Kuhfuss

Abstract

We estimate farmers’ preferences for outcome‐based (or results‐based) payment for ecosystem service scheme in Japan. To this end, we use a two‐stage stated preference approach—the first stage models farmers’ decisions to adopt outcome‐based contracts using a discrete choice experiment. The second stage estimates the areas of land which farmers who choose to participate will enrol in the scheme. Based on a sample of 333 respondents, our results show that most farmers are willing to participate in outcome‐based contacts. A variety of contract attributes are found to influence farmers’ decisions on participation. However, once a farmer decides to participate, their decision on how much farmland to enrol in is likely to be influenced solely by the per‐hectare payment. Therefore, to encourage more farmers to participate and enrol more farmland, policy‐makers’ decisions on the level of payments offered are critically important.

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  • Katsuya Tanaka & Nicholas Hanley & Laure Kuhfuss, 2022. "Farmers’ preferences toward an outcome‐based payment for ecosystem service scheme in Japan," Journal of Agricultural Economics, Wiley Blackwell, vol. 73(3), pages 720-738, September.
    • Handle: RePEc:bla:jageco:v:73:y:2022:i:3:p:720-738
    DOI: 10.1111/1477-9552.12478
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    3. Simpson, Katherine & Armsworth, Paul R. & Dallimer, Martin & Nthambi, Mary & de Vries, Frans P. & Hanley, Nick, 2023. "Improving the ecological and economic performance of agri-environment schemes: Payment by modelled results versus payment for actions," Land Use Policy, Elsevier, vol. 130(C).
    4. Canessa, Carolin & Venus, Terese & Wiesmeier, Miriam & Mennig, Philipp & Sauer, Johannes, 2023. "Farmers’ preferences over alternative AECS designs. Do the ecological conditions influence the willingness to accept result-based contracts?," 97th Annual Conference, March 27-29, 2023, Warwick University, Coventry, UK 334508, Agricultural Economics Society - AES.
    5. Tyllianakis, Emmanouil & Martin-Ortega, Julia & Ziv, Guy & Chapman, Pippa J. & Holden, Joseph & Cardwell, Michael & Fyfe, Duncan, 2023. "A window into land managers’ preferences for new forms of agri-environmental schemes: Evidence from a post-Brexit analysis," Land Use Policy, Elsevier, vol. 129(C).

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