IDEAS home Printed from https://ideas.repec.org/a/eee/ecolec/v70y2011i8p1558-1564.html
   My bibliography  Save this article

Determinants of farmers' willingness to participate in subsidy schemes for pesticide-free buffer zones--A choice experiment study

Author

Listed:
  • Christensen, Tove
  • Pedersen, Anders Branth
  • Nielsen, Helle Oersted
  • Mørkbak, Morten Raun
  • Hasler, Berit
  • Denver, Sigrid

Abstract

Danish farmers have been far less interested in agri-environmental subsidy schemes (AES) than anticipated. In order to examine how to improve the appeal of such schemes, a choice experiment was conducted concerning 444 Danish farmers' preferences for subsidy schemes for pesticide-free buffer zones. A random parameter logit framework was used to capture heterogeneity among farmers. Our results indicate that 1) the vast majority of farmers are willing to trade off the size of the subsidy for less restrictive scheme requirements and that 2) the amount of the subsidy they are willing to trade off varies with specific scheme requirements, suggesting which features are most important for successful policy design. Our results suggest that farmers value flexible contract terms higher than reduced administrative burdens. Finally, we suggest a practical approach to estimating a monetary value of farmers' reluctance to participate in AES. While the trade off's that farmers are willing to make between subsidy size and individual scheme requirements are case specific, our results concerning increased use of farm advisors, farmers ability of valuing different types of flexibility, and our attempt to place a monetary value on farmers' reluctance to engage in regulatory subsidy schemes have a potentially broader application platform.

Suggested Citation

  • Christensen, Tove & Pedersen, Anders Branth & Nielsen, Helle Oersted & Mørkbak, Morten Raun & Hasler, Berit & Denver, Sigrid, 2011. "Determinants of farmers' willingness to participate in subsidy schemes for pesticide-free buffer zones--A choice experiment study," Ecological Economics, Elsevier, vol. 70(8), pages 1558-1564, June.
  • Handle: RePEc:eee:ecolec:v:70:y:2011:i:8:p:1558-1564
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0921800911001303
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Jürgen Meyerhoff & Ulf Liebe, 2009. "Status Quo Effect in Choice Experiments: Empirical Evidence on Attitudes and Choice Task Complexity," Land Economics, University of Wisconsin Press, vol. 85(3), pages 515-528.
    2. Wiktor Adamowicz & Peter Boxall & Michael Williams & Jordan Louviere, 1998. "Stated Preference Approaches for Measuring Passive Use Values: Choice Experiments and Contingent Valuation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(1), pages 64-75.
    3. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521766555, December.
    4. Kahneman, Daniel & Tversky, Amos, 1979. "Prospect Theory: An Analysis of Decision under Risk," Econometrica, Econometric Society, vol. 47(2), pages 263-291, March.
    5. Maria Espinosa-Goded & Jesús Barreiro-Hurlé & Eric Ruto, 2010. "What Do Farmers Want From Agri-Environmental Scheme Design? A Choice Experiment Approach," Journal of Agricultural Economics, Wiley Blackwell, vol. 61(2), pages 259-273.
    6. Eric Ruto & Guy Garrod, 2009. "Investigating farmers' preferences for the design of agri-environment schemes: a choice experiment approach," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 52(5), pages 631-647.
    7. Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74, pages 132-132.
    8. Andrew A. Goett & Kathleen Hudson & Kenneth E. Train, 2000. "Customers' Choice Among Retail Energy Suppliers: The Willingness-to-Pay for Service Attributes," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4), pages 1-28.
    9. Louviere,Jordan J. & Hensher,David A. & Swait,Joffre D. With contributions by-Name:Adamowicz,Wiktor, 2000. "Stated Choice Methods," Cambridge Books, Cambridge University Press, number 9780521788304, March.
    10. Hanley, Nick & Adamowicz, Wiktor & Wright, Robert E., 2005. "Price vector effects in choice experiments: an empirical test," Resource and Energy Economics, Elsevier, vol. 27(3), pages 227-234, October.
    11. Edi Defrancesco & Paola Gatto & Ford Runge & Samuele Trestini, 2008. "Factors Affecting Farmers' Participation in Agri-environmental Measures: A Northern Italian Perspective," Journal of Agricultural Economics, Wiley Blackwell, vol. 59(1), pages 114-131, February.
    12. Gerard Wynn & Bob Crabtree & Jacqueline Potts, 2001. "Modelling Farmer Entry into the Environmentally Sensitive Area Schemes in Scotland," Journal of Agricultural Economics, Wiley Blackwell, vol. 52(1), pages 65-82.
    13. Morten Mørkbak & Tove Christensen & Dorte Gyrd-Hansen, 2010. "Choke Price Bias in Choice Experiments," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 45(4), pages 537-551, April.
    14. Geraldine Ducos & Pierre Dupraz & Francois Bonnieux, 2009. "Agri-environment contract adoption under fixed and variable compliance costs," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 52(5), pages 669-687.
    15. Isabel Vanslembrouck & Guido Huylenbroeck & Wim Verbeke, 2002. "Determinants of the Willingness of Belgian Farmers to Participate in Agri-environmental Measures," Journal of Agricultural Economics, Wiley Blackwell, vol. 53(3), pages 489-511.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Greiner, Romy & Bliemer, Michiel & Ballweg, Julie, 2014. "Design considerations of a choice experiment to estimate likely participation by north Australian pastoralists in contractual biodiversity conservation," Journal of choice modelling, Elsevier, vol. 10(C), pages 34-45.
    2. Franzén, Frida & Dinnétz, Patrik & Hammer, Monica, 2016. "Factors affecting farmers' willingness to participate in eutrophication mitigation — A case study of preferences for wetland creation in Sweden," Ecological Economics, Elsevier, vol. 130(C), pages 8-15.
    3. repec:eee:ecolec:v:142:y:2017:i:c:p:120-129 is not listed on IDEAS
    4. Sylvaine Lemeilleur & Julie Subervie & Anderson Edilson Presoto & Roberta de Castro Souza & Maria Sylvia Macchione Saes, 2016. "Eco-certified contract choice among coffee farmersin Brazil," Working Papers 16-09, LAMETA, Universtiy of Montpellier.
    5. Coralie Calvet & Philippe Le Coënt & Claude Napoleone & Fabien Quetier, 2017. "Challenges of achieving biodiversity offset outcomes through agri-environmental schemes: evidence from an empirical study in Southern France »," Working Papers 17-05, LAMETA, Universtiy of Montpellier.
    6. Breustedt, Gunnar & Schulz, Norbert & Latacz-Lohmann, Uwe, 2013. "Ermittlung der Teilnahmebereitschaft an Vertragsnaturschutzprogrammen und der dafür notwendigen Ausgleichszahlungen mit Hilfe eines Discrete-Choice-Experimentes," Journal of International Agricultural Trade and Development, Journal of International Agricultural Trade and Development, vol. 62(4).
    7. Kuhfuss, Laure & Jacquet, Florence & Preget, Raphaële & Thoyer, Sophie, 2012. "Le dispositif des MAEt pour l’enjeu eau : une fausse bonne idée ?," Revue d'Etudes en Agriculture et Environnement, Editions NecPlus, vol. 93(04), pages 395-422, December.
    8. Le Coent, Philippe & Préget, Raphaële & Thoyer, Sophie, 2017. "Compensating Environmental Losses Versus Creating Environmental Gains: Implications for Biodiversity Offsets," Ecological Economics, Elsevier, vol. 142(C), pages 120-129.
    9. Breustedt, Gunnar & Schulz, Norbert & Latacz-Lohmann, Uwe, 2013. "Kalibrierung von Vertragsnaturschutzprogrammen mittels eines zweistufigen Discrete-Choice-Experimentes," Journal of International Agricultural Trade and Development, Journal of International Agricultural Trade and Development, vol. 62(4).
    10. Cranford, Matthew & Mourato, Susana, 2014. "Credit-Based Payments for Ecosystem Services: Evidence from a Choice Experiment in Ecuador," World Development, Elsevier, vol. 64(C), pages 503-520.
    11. Brouwer, Roy & Lienhoop, Nele & Oosterhuis, Frans, 2015. "Incentivizing afforestation agreements: Institutional-economic conditions and motivational drivers," Journal of Forest Economics, Elsevier, vol. 21(4), pages 205-222.
    12. Alló, Maria & Igleasias, Eva & Loureiro, Maria L., 2013. "Farmers’ preferences and social capital towards agri-environmental schemes for protecting birds," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150620, Agricultural and Applied Economics Association.
    13. Gramig, Benjamin M. & Widmar, Nicole J.O., 2015. "Estimating Farmers' Willingness to Change Tillage Practices to Supply Carbon Emissions Offsets," 89th Annual Conference, April 13-15, 2015, Warwick University, Coventry, UK 204203, Agricultural Economics Society.
    14. Sylvaine Lemeilleur & Julie Subervie & Anderson Edilson Presoto & Roberta De Castro Souza & Maria Sylvia Macchione Saes, 2016. "Eco-certified contract choice among coffee farmers in Brazil," Working Papers hal-01512224, HAL.
    15. Zandersen, Marianne & Jørgensen, Sisse Liv & Nainggolan, Doan & Gyldenkærne, Steen & Winding, Anne & Greve, Mogens Humlekrog & Termansen, Mette, 2016. "Potential and economic efficiency of using reduced tillage to mitigate climate effects in Danish agriculture," Ecological Economics, Elsevier, vol. 123(C), pages 14-22.
    16. repec:bla:jageco:v:68:y:2017:i:3:p:801-821 is not listed on IDEAS
    17. Greiner, Romy, 2014. "Willingness of north Australian pastoralists and graziers to participate in contractual biodiversity conservation," 2014 Conference (58th), February 4-7, 2014, Port Maquarie, Australia 165839, Australian Agricultural and Resource Economics Society.
    18. Greiner, Romy, 2015. "Motivations and attitudes influence farmers' willingness to participate in biodiversity conservation contracts," Agricultural Systems, Elsevier, vol. 137(C), pages 154-165.
    19. Gachango, Florence Gathoni & Andersen, Laura Mørch & Pedersen, Søren Marcus, 2015. "Adoption of voluntary water-pollution reduction technologies and water quality perception among Danish farmers," Agricultural Water Management, Elsevier, vol. 158(C), pages 235-244.
    20. Buckley, Cathal & Hynes, Stephen & Mechan, Sarah, 2012. "Operating or not Operating at the Margin: Farmers Willingness to Adopt a Riparian Buffer Zone," Working Papers 148830, Socio-Economic Marine Research Unit, National University of Ireland, Galway.
    21. Kaczan, David & Swallow, Brent M. & Adamowicz, W.L. (Vic), 2013. "Designing a payments for ecosystem services (PES) program to reduce deforestation in Tanzania: An assessment of payment approaches," Ecological Economics, Elsevier, vol. 95(C), pages 20-30.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ecolec:v:70:y:2011:i:8:p:1558-1564. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu). General contact details of provider: http://www.elsevier.com/locate/ecolecon .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.