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Towards More Efficient Compensation Programmes for Tourists' Benefits From Agriculture in Europe

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  • Franz Hackl
  • Gerald Pruckner

Abstract

This paper covers nonmarket services provided by farmers for recreational purposes in several Central European regions. A regionally specified general equilibrium model is used to derive the efficiency conditions for a competitive equilibrium to guarantee a Pareto optimal outcome. Moreover, we present green agricultural compensation programmes in Europe and their assessment from an economic perspective. The empirical analysis focuses on tourists' willingness to pay (WTP) for the provision of agricultural landscape-enhancing services in Austria. A comparison of these measures with current voluntary compensation payments made to farmers for the preservation of an agricultural countryside in several Austrian tourism communities suggests that the hypothetical contingent valuation (CV) results represent a valid order of magnitude for the value of recreation-related agricultural services. As far as agricultural policy is concerned, environmental improvement, the stabilization of agricultural income levels, diminishing intrasectoral income differences, and the development of economically disadvantaged rural regions can be expected from directly subsidizing farmers for the provision of countryside amenities. Copyright Kluwer Academic Publishers 1997

Suggested Citation

  • Franz Hackl & Gerald Pruckner, 1997. "Towards More Efficient Compensation Programmes for Tourists' Benefits From Agriculture in Europe," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 10(2), pages 189-205, September.
  • Handle: RePEc:kap:enreec:v:10:y:1997:i:2:p:189-205
    DOI: 10.1023/A:1026480123406
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    References listed on IDEAS

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    1. Kalle Seip & Jon Strand, 1992. "Willingness to pay for environmental goods in Norway: A contingent valuation study with real payment," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 2(1), pages 91-106, January.
    2. 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 173-190.
    3. Helen R. Neill & Ronald G. Cummings & Philip T. Ganderton & Glenn W. Harrison & Thomas McGuckin, 1994. "Hypothetical Surveys and Real Economic Commitments," Land Economics, University of Wisconsin Press, vol. 70(2), pages 145-154.
    4. Drake, Lars, 1992. "The Non-market Value of the Swedish Agricultural Landscape," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 19(3), pages 351-364.
    5. Cummings, Ronald G & Harrison, Glenn W & Rutstrom, E Elisabet, 1995. "Homegrown Values and Hypothetical Surveys: Is the Dichotomous Choice Approach Incentive-Compatible?," American Economic Review, American Economic Association, vol. 85(1), pages 260-266, March.
    6. Baumol,William J. & Oates,Wallace E., 1988. "The Theory of Environmental Policy," Cambridge Books, Cambridge University Press, number 9780521322249.
    7. Peter A. Diamond & Jerry A. Hausman, 1994. "Contingent Valuation: Is Some Number Better than No Number?," Journal of Economic Perspectives, American Economic Association, vol. 8(4), pages 45-64, Fall.
    8. Cropper, Maureen L & Oates, Wallace E, 1992. "Environmental Economics: A Survey," Journal of Economic Literature, American Economic Association, vol. 30(2), pages 675-740, June.
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    Cited by:

    1. Baylis, Kathy & Peplow, Stephen & Rausser, Gordon & Simon, Leo, 2008. "Agri-environmental policies in the EU and United States: A comparison," Ecological Economics, Elsevier, vol. 65(4), pages 753-764, May.
    2. Lava Prakash Yadav & Stephen O’Neill & Tom van Rensburg, 2013. "Economic Crisis and the Restructuring of Wage Setting Mechanisms for Vulnerable Workers in Ireland," The Economic and Social Review, Economic and Social Studies, vol. 44(2), pages 221-245.
    3. Kan, Iddo & Haim, David & Rapaport-Rom, Mickey & Shechter, Mordechai, 2009. "Environmental amenities and optimal agricultural land use: The case of Israel," Ecological Economics, Elsevier, vol. 68(6), pages 1893-1898, April.
    4. Peterson, Jeffrey M. & Boisvert, Richard N. & de Gorter, Harry, 1999. "Multifunctionality and Optimal Environmental Policies for Agriculture in an Open Economy," Working Papers 127701, Cornell University, Department of Applied Economics and Management.
    5. Aliza Fleischer & Yacov Tsur, 2009. "The Amenity Value of Agricultural Landscape and Rural-Urban Land Allocation," Journal of Agricultural Economics, Wiley Blackwell, vol. 60(1), pages 132-153.
    6. Franz Hackl & Martin Halla & Gerald J Pruckner, 2005. "Coasian payments for agricultural external benefits - an empirical cross-section analysis," Economics working papers 2005-11, Department of Economics, Johannes Kepler University Linz, Austria.
    7. Sande, Doris N. & Mullen, Jeffrey D. & Nzaku, Kilungu, 2009. "Amenity benefits and public policy: An application to the Georgia Pecan Industry," 2009 Annual Meeting, January 31-February 3, 2009, Atlanta, Georgia 46851, Southern Agricultural Economics Association.
    8. Schmid, Erwin & Sinabell, Franz & Hofreither, Markus F., 2007. "Phasing out of environmentally harmful subsidies: Consequences of the 2003 CAP reform," Ecological Economics, Elsevier, vol. 60(3), pages 596-604, January.
    9. Mara Thiene & Yacov Tsur, 2013. "Agricultural Landscape Value and Irrigation Water Policy," Journal of Agricultural Economics, Wiley Blackwell, vol. 64(3), pages 641-653, September.
    10. Peterson, Jeffrey M., 1999. "Optimal Agricultural Land Pricing Policies Under Multiple Externalities In A Global Economy," 1999 Annual meeting, August 8-11, Nashville, TN 21613, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    11. Aliza Fleischer & Yacov Tsur, 2005. "The Amenity Value of Agricultural Landscape and Rural-Urban Land Allocation," ERSA conference papers ersa05p55, European Regional Science Association.
    12. Wood, Nancy & Halbrendt, Catherine K. & Liang, Chyi-Lyi (Kathleen) & Wang, Qingbin, 2000. "Interdependence Of Agriculture And Tourism: Quantifying The Value Of The Agricultural Working Landscape In Vermont," 2000 Annual meeting, July 30-August 2, Tampa, FL 21814, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    13. Peterson, Jeffrey M. & Boisvert, Richard N., 2000. "Optimal Land Conversion At The Rural-Urban Fringe With Positive And Negative Agricultural Externalities," 2000 Annual meeting, July 30-August 2, Tampa, FL 21722, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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