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Estimating the Supply of Environmental Benefits by Agriculture: A French Case Study

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  • F. Bonnieux
  • P. Rainelli
  • D. Vermersch
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    Abstract

    There has been an increasing public interest in promoting the supply of environmental benefits by agriculture. The Environmentally Sensitive Area scheme addresses this challenge by offering farmers voluntary agreements: entrants are compensated for complying with a package of prescribed farming practices designed to secure conservation goals. This paper emphasizes the uptake of agreements from two perspectives: (i) ex post, it considers why some eligible farmers join a proposed scheme and why some do not, (ii) ex ante, it discusses how non-eligible farmers would behave if they were proposed a well-defined scheme. Ex post perspective refers to farmers' actual behaviour which is observed by the environmental agency, whereas the ex ante perspective is related to their contingent one. A single economic model is derived to deal with both cases. Econometric results from a French case study with respect to wetland preservation are given. There is some consistency between the empirical results obtained in both cases, and to some extent it may be argued that contingent behaviour predicts the actual one. Copyright Kluwer Academic Publishers 1998

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    Article provided by Springer & European Association of Environmental and Resource Economists in its journal Environmental and Resource Economics.

    Volume (Year): 11 (1998)
    Issue (Month): 2 (March)
    Pages: 135-153

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    Handle: RePEc:kap:enreec:v:11:y:1998:i:2:p:135-153
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    Keywords: environmental benefits; voluntary agreements; contingent behaviour; wetland preservation; agricultural policy;

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    1. Lau, Lawrence J., 1976. "A characterization of the normalized restricted profit function," Journal of Economic Theory, Elsevier, vol. 12(1), pages 131-163, February.
    2. Lilyan E. Fulginiti & Richard K. Perrin, 1992. "Theory and Measurement of Producer Response under Quotas, The," Food and Agricultural Policy Research Institute (FAPRI) Publications 92-wp94, Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University.
    3. Fulginiti, Lilyan & Perrin, Richard, 1993. "The Theory and Measurement of Producer Response under Quotas," The Review of Economics and Statistics, MIT Press, vol. 75(1), pages 97-106, February.
    4. W. Michael Hanemann, 1984. "Welfare Evaluations in Contingent Valuation Experiments with Discrete Responses," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 66(3), pages 332-341.
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    Cited by:

    1. Johst, Karin & Drechsler, Martin & Watzold, Frank, 2002. "An ecological-economic modelling procedure to design compensation payments for the efficient spatio-temporal allocation of species protection measures," Ecological Economics, Elsevier, vol. 41(1), pages 37-49, April.
    2. Unay Gailhard, Ilkay & Bavorova, Miroslava & Pirscher, Frauke, 2012. "The Influence of Communication Frequency with Social Network Actors on the Continuous Innovation Adoption: Organic Farmers in Germany," 131st Seminar, September 18-19, 2012, Prague, Czech Republic 135786, European Association of Agricultural Economists.
    3. Lizin, Sebastien & Van Passel, Steven & Schreurs, Eloi, 2015. "Farmres' Perceived Cost of Land Use restrictions: A Simulated Purchasing Decision Using Dscrete Choice Experiments," 2015 Conference, August 9-14, 2015, Milan, Italy 212054, International Association of Agricultural Economists.
    4. Élodie Letort & Chalachew Temesgen, 2014. "Influence of environmental policies on farmland prices in the Bretagne region of France," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement, INRA Department of Economics, vol. 95(1), pages 77-109.
    5. Desjeux, Yann & Dupraz, Pierre & Latruffe, Laure & Maigne, Elise & Cahuzac, Eric, 2014. "Evaluating the impact of rural development measures on farm labour use: a spatial approach," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182817, European Association of Agricultural Economists.
    6. Christensen, Jan, 2002. "Theory of Contracts and Agri-Environment Policies: A Budget Restriction Alters Standard Results of Mechanisms Design Theory," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain 24882, European Association of Agricultural Economists.
    7. Mooney, Daniel F. & Barham, Bradford L., 2013. "What Drives the Adoption of Clean Agricultural Technologies? An Ex Ante Assessment of Sustainable Biofuel Production in Southwestern Wisconsin," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150557, Agricultural and Applied Economics Association.
    8. Yrjola, Tapani & Kola, Jukka, 2002. "Social Benefits of Multifunctional Agriculture in Finland," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain 24812, European Association of Agricultural Economists.
    9. Barreiro-Hurlé, Jesús & Espinosa-Goded, Maria & Dupraz, Pierre, 2008. "Does Intensity Of Change Matter? Factors Affecting Adoption In Two Agri-Environmental Schemes," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6458, European Association of Agricultural Economists.
    10. Defrancesco, Edi & Gatto, Paola & Runge, C. Ford & Trestini, Samuele, 2006. "Factors Affecting Farmers' Participation in Agri-Environmental Measures: Evidence from a Case Study," Conference Papers 6688, University of Minnesota, Center for International Food and Agricultural Policy.
    11. Amigues, Jean-Pierre & Boulatoff (Broadhead), Catherine & Desaigues, Brigitte & Gauthier, Caroline & Keith, John E., 2002. "The benefits and costs of riparian analysis habitat preservation: a willingness to accept/willingness to pay contingent valuation approach," Ecological Economics, Elsevier, vol. 43(1), pages 17-31, November.
    12. P. Dupraz & D. Vermersch & B. De Frahan & L. Delvaux, 2003. "The Environmental Supply of Farm Households: A Flexible Willingness to Accept Model," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 25(2), pages 171-189, June.
    13. Menozzi, Davide & Fioravanzi, Martina & Donati, Michele, 2015. "Farmer’s motivation to adopt sustainable agricultural practices," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), issue 2, August.
    14. Jongeneel, Roelof A. & Polman, Nico B.P. & Slangen, Louis H.G., 2005. "Why Are Farmers Going Multifunctional?," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24585, European Association of Agricultural Economists.

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