IDEAS home Printed from https://ideas.repec.org/a/eee/forpol/v124y2021ics1389934120307085.html
   My bibliography  Save this article

Forest owners' interest in participation and their compensation claims in voluntary landscape value trading: The case of wind power parks in Finland

Author

Listed:
  • Mäntymaa, Erkki
  • Pouta, Eija
  • Hiedanpää, Juha

Abstract

Although wind power is regarded as a sustainable way to produce electrical energy, wind turbines may cause harmful effects locally. A possible solution is to reduce the effects through forest management practices, for example leaving forest stands uncut as landscape shields to hide the turbines and stop them from spoiling the scenery. Using data from an online survey of landowners, we investigated whether voluntary mechanisms could encourage forest owners to change their forest management practices near wind farms to minimize the harmful effects. More precisely, we analyzed forest owners' willingness to participate in an initiative involving payment for ecosystem services called Landscape Value Trade (LVT) and studied the related compensation claims in southwestern Finland. We explained willingness to participate and the claims made with the characteristics of the landowners or their holding and with attitudinal variables. According to our results, 73.6% of the respondents would possibly or certainly participate in the mechanism. The average annual compensation requirement in this study was €298 per hectare. In addition, we found that low dependence on forestry and forest-related income tended to increase interest in participation in the LVT initiative and reduce the compensation claims. An important result related to the cost-effective application of the mechanism, is that the more interested the respondents were in cooperation with the LVT initiative the less compensation they would claim. Thus, the voluntary nature of the LVT initiative simultaneously acted as a cost-reducing element. The results could help in detecting some of the key features of the supply side of LVT initiatives.

Suggested Citation

  • Mäntymaa, Erkki & Pouta, Eija & Hiedanpää, Juha, 2021. "Forest owners' interest in participation and their compensation claims in voluntary landscape value trading: The case of wind power parks in Finland," Forest Policy and Economics, Elsevier, vol. 124(C).
    • Handle: RePEc:eee:forpol:v:124:y:2021:i:c:s1389934120307085
    DOI: 10.1016/j.forpol.2020.102382
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1389934120307085
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.forpol.2020.102382?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    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. Lori Lynch & Sabrina J. Lovell, 2003. "Combining Spatial and Survey Data to Explain Participation in Agricultural Land reservation Programs," Land Economics, University of Wisconsin Press, vol. 79(2), pages 259-276.
    2. Harry Foster & James Burrows, 2017. "Hypothetical bias: a new meta-analysis," Chapters, in: Daniel McFadden & Kenneth Train (ed.), Contingent Valuation of Environmental Goods, chapter 10, pages 270-291, Edward Elgar Publishing.
    3. Groothuis, Peter A. & Groothuis, Jana D. & Whitehead, John C., 2008. "Green vs. green: Measuring the compensation required to site electrical generation windmills in a viewshed," Energy Policy, Elsevier, vol. 36(4), pages 1545-1550, April.
    4. Mäntymaa, Erkki & Juutinen, Artti & Tyrväinen, Liisa & Karhu, Jouni & Kurttila, Mikko, 2018. "Participation and compensation claims in voluntary forest landscape conservation: The case of the Ruka-Kuusamo tourism area, Finland," Journal of Forest Economics, Elsevier, vol. 33(C), pages 14-24.
    5. Anna Bartczak & Wiktor Budziński & Bernadeta Gołębiowska, 2018. "Impact of beliefs about negative effects of wind turbines on preference heterogeneity regarding renewable energy development in Poland," Working Papers 2018-19, Faculty of Economic Sciences, University of Warsaw.
    6. Meyerhoff, Jürgen, 2013. "Do turbines in the vicinity of respondents' residences influence choices among programmes for future wind power generation?," Journal of choice modelling, Elsevier, vol. 7(C), pages 58-71.
    7. Tunçel, Tuba & Hammitt, James K., 2014. "A new meta-analysis on the WTP/WTA disparity," Journal of Environmental Economics and Management, Elsevier, vol. 68(1), pages 175-187.
    8. 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, June.
    9. Adam Reimer & Aaron Thompson & Linda Prokopy, 2012. "The multi-dimensional nature of environmental attitudes among farmers in Indiana: implications for conservation adoption," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 29(1), pages 29-40, March.
    10. Horowitz, John K. & McConnell, Kenneth E., 2002. "A Review of WTA/WTP Studies," Journal of Environmental Economics and Management, Elsevier, vol. 44(3), pages 426-447, November.
    11. Charles Warren & Carolyn Lumsden & Simone O'Dowd & Richard Birnie, 2005. "'Green On Green': Public perceptions of wind power in Scotland and Ireland," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 48(6), pages 853-875.
    12. Robert Ryan & Donna Erickson & Raymond De Young, 2003. "Farmers' Motivations for Adopting Conservation Practices along Riparian Zones in a Mid-western Agricultural Watershed," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 46(1), pages 19-37.
    13. Gordon, Line J. & Finlayson, C. Max & Falkenmark, Malin, 2010. "Managing water in agriculture for food production and other ecosystem services," Agricultural Water Management, Elsevier, vol. 97(4), pages 512-519, April.
    14. Yohei Mitani & Henrik Lindhjem, 2015. "Forest Owners’ Participation in Voluntary Biodiversity Conservation: What Does It Take to Forgo Forestry for Eternity?," Land Economics, University of Wisconsin Press, vol. 91(2), pages 235-251.
    15. Christian Langpap, 2004. "Conservation Incentives Programs for Endangered Species: An Analysis of Landowner Participation," Land Economics, University of Wisconsin Press, vol. 80(3), pages 375-388.
    16. 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.
    17. 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, January.
    18. Erkki Mäntymaa & Ville Ovaskainen & Artti Juutinen & Liisa Tyrväinen, 2018. "Integrating nature-based tourism and forestry in private lands under heterogeneous visitor preferences for forest attributes," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 61(4), pages 724-746, March.
    19. Stine Broch & Suzanne Vedel, 2012. "Using Choice Experiments to Investigate the Policy Relevance of Heterogeneity in Farmer Agri-Environmental Contract Preferences," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 51(4), pages 561-581, April.
    20. Dimitropoulos, Alexandros & Kontoleon, Andreas, 2009. "Assessing the determinants of local acceptability of wind-farm investment: A choice experiment in the Greek Aegean Islands," Energy Policy, Elsevier, vol. 37(5), pages 1842-1854, May.
    21. Vedel, Suzanne Elizabeth & Jacobsen, Jette Bredahl & Thorsen, Bo Jellesmark, 2015. "Forest owners' willingness to accept contracts for ecosystem service provision is sensitive to additionality," Ecological Economics, Elsevier, vol. 113(C), pages 15-24.
    22. Nape, Steven & Frykblom, Peter & Harrison, Glenn W. & Lesley, James C., 2003. "Hypothetical bias and willingness to accept," Economics Letters, Elsevier, vol. 78(3), pages 423-430, March.
    23. Douglass C. North, 2005. "Introduction to Understanding the Process of Economic Change," Introductory Chapters, in: Understanding the Process of Economic Change, Princeton University Press.
    24. G. A. A. Wossink, 2003. "Biodiversity conservation by farmers: analysis of actual and contingent participation," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 30(4), pages 461-485, December.
    25. Daniel McFadden & Kenneth Train (ed.), 2017. "Contingent Valuation of Environmental Goods," Books, Edward Elgar Publishing, number 17527.
    26. Meyer, Andrew, 2015. "Does education increase pro-environmental behavior? Evidence from Europe," Ecological Economics, Elsevier, vol. 116(C), pages 108-121.
    27. Isabel Vanslembrouck & Guido Van 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, November.
    28. Bolkesjø, Torjus Folsland & Solberg, Birger & Wangen, Knut Reidar, 2007. "Heterogeneity in nonindustrial private roundwood supply: Lessons from a large panel of forest owners," Journal of Forest Economics, Elsevier, vol. 13(1), pages 7-28, May.
    29. Zerrahn, Alexander, 2017. "Wind Power and Externalities," Ecological Economics, Elsevier, vol. 141(C), pages 245-260.
    30. Gadaud, Juliette & Rambonilaza, Mbolatiana, 2010. "Amenity values and payment schemes for free recreation services from non-industrial private forest properties: A French case study," Journal of Forest Economics, Elsevier, vol. 16(4), pages 297-311, December.
    31. 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.
    32. Kline, Jeffrey D. & Alig, Ralph J. & Johnson, Rebecca L., 2000. "Forest owner incentives to protect riparian habitat," Ecological Economics, Elsevier, vol. 33(1), pages 29-43, April.
    33. Daniel Kahneman & Jack L. Knetsch & Richard H. Thaler, 1991. "Anomalies: The Endowment Effect, Loss Aversion, and Status Quo Bias," Journal of Economic Perspectives, American Economic Association, vol. 5(1), pages 193-206, Winter.
    34. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    35. 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.
    36. A.J. Villanueva & M. Rodríguez-Entrena & M. Arriaza & J.A. Gómez-Limón, 2017. "Heterogeneity of farmers' preferences towards agri-environmental schemes across different agricultural subsystems," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 60(4), pages 684-707, April.
    37. Knowler, Duncan & Bradshaw, Ben, 2007. "Farmers' adoption of conservation agriculture: A review and synthesis of recent research," Food Policy, Elsevier, vol. 32(1), pages 25-48, February.
    38. Markowski-Lindsay, Marla & Stevens, Thomas & Kittredge, David B. & Butler, Brett J. & Catanzaro, Paul & Dickinson, Brenton J., 2011. "Barriers to Massachusetts forest landowner participation in carbon markets," Ecological Economics, Elsevier, vol. 71(C), pages 180-190.
    39. Bergseng, Even & Vatn, Arild, 2009. "Why protection of biodiversity creates conflict - Some evidence from the Nordic countries," Journal of Forest Economics, Elsevier, vol. 15(3), pages 147-165, August.
    40. Mariel, Petr & Meyerhoff, Jürgen & Hess, Stephane, 2015. "Heterogeneous preferences toward landscape externalities of wind turbines – combining choices and attitudes in a hybrid model," Renewable and Sustainable Energy Reviews, Elsevier, vol. 41(C), pages 647-657.
    41. Aslam, Uzma & Termansen, Mette & Fleskens, Luuk, 2017. "Investigating farmers’ preferences for alternative PES schemes for carbon sequestration in UK agroecosystems," Ecosystem Services, Elsevier, vol. 27(PA), pages 103-112.
    42. Vedel, Suzanne Elizabeth & Jacobsen, Jette Bredahl & Thorsen, Bo Jellesmark, 2015. "Contracts for afforestation and the role of monitoring for landowners’ willingness to accept," Forest Policy and Economics, Elsevier, vol. 51(C), pages 29-37.
    43. Meyerhoff, Jürgen & Ohl, Cornelia & Hartje, Volkmar, 2010. "Landscape externalities from onshore wind power," Energy Policy, Elsevier, vol. 38(1), pages 82-92, January.
    44. Tyrväinen, Liisa & Mäntymaa, Erkki & Ovaskainen, Ville, 2014. "Demand for enhanced forest amenities in private lands: The case of the Ruka-Kuusamo tourism area, Finland," Forest Policy and Economics, Elsevier, vol. 47(C), pages 4-13.
    45. Maybery, Darryl & Crase, Lin & Gullifer, Chris, 2005. "Categorising farming values as economic, conservation and lifestyle," Journal of Economic Psychology, Elsevier, vol. 26(1), pages 59-72, February.
    46. Zbinden, Simon & Lee, David R., 2005. "Paying for Environmental Services: An Analysis of Participation in Costa Rica's PSA Program," World Development, Elsevier, vol. 33(2), pages 255-272, February.
    47. Juutinen, Artti & Mantymaa, Erkki & Monkkonen, Mikko & Svento, Rauli, 2008. "Voluntary agreements in protecting privately owned forests in Finland -- To buy or to lease," Forest Policy and Economics, Elsevier, vol. 10(4), pages 230-239, February.
    48. Drechsler, Martin & Ohl, Cornelia & Meyerhoff, Jürgen & Eichhorn, Marcus & Monsees, Jan, 2011. "Combining spatial modeling and choice experiments for the optimal spatial allocation of wind turbines," Energy Policy, Elsevier, vol. 39(6), pages 3845-3854, June.
    49. Lindhjem, Henrik & Mitani, Yohei, 2012. "Forest owners’ willingness to accept compensation for voluntary conservation: A contingent valuation approach," Journal of Forest Economics, Elsevier, vol. 18(4), pages 290-302.
    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. Janová, Jitka & Hampel, David & Kadlec, Jiří & Vrška, Tomáš, 2022. "Motivations behind the forest managers’ decision making about mixed forests in the Czech Republic," Forest Policy and Economics, Elsevier, vol. 144(C).
    2. Georgia Skiniti & Tryfon Daras & Theocharis Tsoutsos, 2022. "Analysis of the Community Acceptance Factors for Potential Wind Energy Projects in Greece," Sustainability, MDPI, vol. 14(23), pages 1-35, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mäntymaa, Erkki & Juutinen, Artti & Tyrväinen, Liisa & Karhu, Jouni & Kurttila, Mikko, 2018. "Participation and compensation claims in voluntary forest landscape conservation: The case of the Ruka-Kuusamo tourism area, Finland," Journal of Forest Economics, Elsevier, vol. 33(C), pages 14-24.
    2. Ioanna Grammatikopoulou & Eija Pouta & Sami Myyrä, 2016. "Exploring the determinants for adopting water conservation measures. What is the tendency of landowners when the resource is already at risk?," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 59(6), pages 993-1014, June.
    3. Tyrväinen, Liisa & Mäntymaa, Erkki & Juutinen, Artti & Kurttila, Mikko & Ovaskainen, Ville, 2021. "Private landowners’ preferences for trading forest landscape and recreational values: A choice experiment application in Kuusamo, Finland," Land Use Policy, Elsevier, vol. 107(C).
    4. Czajkowski, Mikołaj & Zagórska, Katarzyna & Letki, Natalia & Tryjanowski, Piotr & Wąs, Adam, 2021. "Drivers of farmers’ willingness to adopt extensive farming practices in a globally important bird area," Land Use Policy, Elsevier, vol. 107(C).
    5. Rabotyagov, Sergey S. & Lin, Sonja, 2013. "Small forest landowner preferences for working forest conservation contract attributes: A case of Washington State, USA," Journal of Forest Economics, Elsevier, vol. 19(3), pages 307-330.
    6. 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.
    7. Aslam, Uzma & Termansen, Mette & Fleskens, Luuk, 2017. "Investigating farmers’ preferences for alternative PES schemes for carbon sequestration in UK agroecosystems," Ecosystem Services, Elsevier, vol. 27(PA), pages 103-112.
    8. Graversgaard, Morten & Jacobsen, Brian H. & Hoffmann, Carl Christian & Dalgaard, Tommy & Odgaard, Mette Vestergaard & Kjaergaard, Charlotte & Powell, Neil & Strand, John A. & Feuerbach, Peter & Tonder, 2021. "Policies for wetlands implementation in Denmark and Sweden – historical lessons and emerging issues," Land Use Policy, Elsevier, vol. 101(C).
    9. Hansen, Kristiana & Duke, Esther & Bond, Craig & Purcell, Melanie & Paige, Ginger, 2018. "Rancher Preferences for a Payment for Ecosystem Services Program in Southwestern Wyoming," Ecological Economics, Elsevier, vol. 146(C), pages 240-249.
    10. Greiner, Romy, 2015. "Motivations and attitudes influence farmers' willingness to participate in biodiversity conservation contracts," Agricultural Systems, Elsevier, vol. 137(C), pages 154-165.
    11. François J Dessart & Jesús Barreiro-Hurlé & René van Bavel, 2019. "Behavioural factors affecting the adoption of sustainable farming practices: a policy-oriented review," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 46(3), pages 417-471.
    12. Tyllianakis, Emmanouil & Martin-Ortega, Julia, 2021. "Agri-environmental schemes for biodiversity and environmental protection: How we are not yet “hitting the right keys”," Land Use Policy, Elsevier, vol. 109(C).
    13. Chèze, Benoît & David, Maia & Martinet, Vincent, 2020. "Understanding farmers' reluctance to reduce pesticide use: A choice experiment," Ecological Economics, Elsevier, vol. 167(C).
    14. Nielsen, Anne Sofie Elberg & Jacobsen, Jette Bredahl & Strange, Niels, 2018. "Landowner participation in forest conservation programs: A revealed approach using register, spatial and contract data," Journal of Forest Economics, Elsevier, vol. 30(C), pages 1-12.
    15. Peri, Erez & Becker, Nir & Tal, Alon, 2020. "What really undermines public acceptance of wind turbines? A choice experiment analysis in Israel," Land Use Policy, Elsevier, vol. 99(C).
    16. Kanchanaroek, Yingluck & Aslam, Uzma, 2018. "Policy schemes for the transition to sustainable agriculture—Farmer preferences and spatial heterogeneity in northern Thailand," Land Use Policy, Elsevier, vol. 78(C), pages 227-235.
    17. Sergei Schaub & Jaboury Ghazoul & Robert Huber & Wei Zhang & Adelaide Sander & Charles Rees & Simanti Banerjee & Robert Finger, 2023. "The role of behavioural factors and opportunity costs in farmers' participation in voluntary agri‐environmental schemes: A systematic review," Journal of Agricultural Economics, Wiley Blackwell, vol. 74(3), pages 617-660, September.
    18. Maldonado, Jorge H. & Moreno-Sanchez, Rocio & Henao-Henao, Juan P. & Bruner, Aaron, 2019. "Does exclusion matter in conservation agreements? A case of mangrove users in the Ecuadorian coast using participatory choice experiments," World Development, Elsevier, vol. 123(C), pages 1-1.
    19. Vedel, Suzanne Elizabeth & Jacobsen, Jette Bredahl & Thorsen, Bo Jellesmark, 2015. "Forest owners' willingness to accept contracts for ecosystem service provision is sensitive to additionality," Ecological Economics, Elsevier, vol. 113(C), pages 15-24.
    20. Daniele Mozzato & Paola Gatto & Edi Defrancesco & Lucia Bortolini & Francesco Pirotti & Elena Pisani & Luigi Sartori, 2018. "The Role of Factors Affecting the Adoption of Environmentally Friendly Farming Practices: Can Geographical Context and Time Explain the Differences Emerging from Literature?," Sustainability, MDPI, vol. 10(9), pages 1-23, August.

    More about this item

    Keywords

    Payments for ecosystem services; Harmful effects of wind turbines; Forest landscapes; Private forest owners; Landscape value trade; Willingness to accept compensation;
    All these keywords.

    JEL classification:

    • Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects

    Statistics

    Access and download statistics

    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:forpol:v:124:y:2021:i:c:s1389934120307085. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/forpol .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.