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The Environmental Supply of Farm Households: A Flexible Willingness to Accept Model

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  • P. Dupraz
  • D. Vermersch
  • B. De Frahan
  • L. Delvaux

Abstract

The purpose of the paper is toanalyse farmers' participation inenvironmental schemes, which are gaining agrowing importance within the Europeanagricultural policy. These schemes areimplemented through voluntary contracts thatpay farmers for the provision of environmentalservices. The microeconomic model that isdeveloped is a farm household model thatincorporates the producer and consumerbehaviour of the farmer to optimise hisenvironmental supply considering that theenvironmental service that he is supplying alsohas the characteristics of a public good. Defined as the difference between the profitloss in providing the environmental service andthe willingness to pay to consume this service,the household's “willingness to accept” (WTA)is compared with two flexible WTA measures thataccount for the technological flexibility ofthe environmental supply. Data come from asurvey of an agri-environmental schemeimplemented in the Walloon region of Belgiumsince 1995 and intended to protect the nestingof some endangered bird species. Econometricresults show that contingent valuation is areliable method to reveal the behaviours offarmers facing the invitation to participate inthis scheme. They also confirm that farmerbehaviour is also influenced by environmental preference. Copyright Kluwer Academic Publishers 2003

Suggested Citation

  • 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.
    • Handle: RePEc:kap:enreec:v:25:y:2003:i:2:p:171-189
    DOI: 10.1023/A:1023910720219
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    References listed on IDEAS

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    1. Neary, J. P. & Roberts, K. W. S., 1980. "The theory of household behaviour under rationing," European Economic Review, Elsevier, vol. 13(1), pages 25-42, January.
    2. F. Bonnieux & P. Rainelli & D. Vermersch, 1998. "Estimating the Supply of Environmental Benefits by Agriculture: A French Case Study," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 11(2), pages 135-153, March.
    3. Merlo, Maurizio & Ferro, Ottone & Povellato, Andrea, 1995. "Valuation and Remuneration of Countryside Stewardship Performed by Agriculture and Forestry," 1994 Conference, August 22-29, 1994, Harare, Zimbabwe 183402, International Association of Agricultural Economists.
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    Cited by:

    1. Zimmermann, Andrea & Britz, Wolfgang, 2014. "European Farms’ Participation in Agri-environmental Measures," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 183073, European Association of Agricultural Economists.
    2. Murphy, Geraldine & Hynes, Stephen & Murphy, Eithne & O'Donoghue, Cathal & Green, Stuart, 2011. "Assessing the compatibility of farmland biodiversity and habitats to the specifications of agri-environmental schemes using a multinomial logit approach," Ecological Economics, Elsevier, vol. 71(C), pages 111-121.
    3. Mooney, Daniel F. & Barham, Bradford L. & Lian, Chang, 2013. "Sustainable Biofuels, Marginal Agricultural Lands, and Farm Supply Response: Micro-Evidence for Southwest Wisconsin," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150510, Agricultural and Applied Economics Association.
    4. Jolejole, Christina B. & Swinton, Scott M. & Lupi, Frank, 2009. "Incentives to Supply Enhanced Ecosystem Services from Cropland," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49356, Agricultural and Applied Economics Association.
    5. Mélanie Jaeck & Robert Lifran, 2009. "Preferences, Norms and Constraints in farmers' agro-ecological choices. Case study using choice experiments survey in the Rhone River Delta, France," Working Papers 09-16, LAMETA, Universtiy of Montpellier, revised Dec 2009.
    6. repec:gam:jsusta:v:10:y:2018:i:1:p:170-:d:126529 is not listed on IDEAS
    7. Howard, Gregory & Roe, Brian E., 2013. "Stripping Because You Want to Versus Stripping Because the Money is Good: A Latent Class Analysis of Farmer Preferences Regarding Filter Strip Programs," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 149821, Agricultural and Applied Economics Association.
    8. Stephen Hynes & Eoghan Garvey, 2009. "Modelling Farmers' Participation in an Agri-environmental Scheme using Panel Data: An Application to the Rural Environment Protection Scheme in Ireland," Journal of Agricultural Economics, Wiley Blackwell, vol. 60(3), pages 546-562.
    9. Raghu, Prabhakaran T. & Das, Sukanya & Ravi, S. Bala & King, E.D. Israel Oliver, 2012. "Use of Contingent Valuation to Assess Farmer Preference for On-farm Conservation of Minor Millets: Case from South India," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 67(3).
    10. Bachev, Hrabrin & Yovchevska, Plamena & Mitova, Dilyana & Toteva, Desislava & Mitov, Anton, 2013. "Еко-Управление В Българското Селското Стопанство
      [Environmental Management in Bulgarian Agriculture]      ," MPRA Paper 52202, University Library of Munich, Germany.
    11. 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.
    12. Alessandra La Notte & Sonia Marongiu & Mauro Masiero & Pietro Molfetta & Riccardo Molignoni & Luca Cesaro, 2015. "Livestock and Ecosystem Services: An Exploratory Approach to Assess Agri-Environment-Climate Payments of RDP in Trentino," Land, MDPI, Open Access Journal, vol. 4(3), pages 1-23, August.
    13. Stephen Hynes & Eoghan Garvey, 2008. "Modelling Structural State Dependency in Agri-Environmental Schemes," Working Papers 0827, Rural Economy and Development Programme,Teagasc.
    14. Stephen Hynes & Cathal O’Donoghue & Eithne Murphy & Ann Kinsella, 2008. "Are far off hills really greener? The Impact of REPS on Farmer Behaviour," Working Papers 0812, Rural Economy and Development Programme,Teagasc.
    15. Prabhakaran T. Raghu & Sukanya Das & S. Bala Ravi & E.D.Israel Oliver King, 2012. "Assessing Farmer’s Willingness to Participate in the On-farm Conservation of Minor Millet using Direct Compensation Payment," Working Papers 2012-073, Madras School of Economics,Chennai,India.
    16. E. Phimister & D. Roberts, 2006. "The Effect of Off-farm Work on the Intensity of Agricultural Production," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 34(4), pages 493-515, August.
    17. Pierre-Alexandre Mahieu & Romain Craste & Bengt Kriström & Pere Riera, 2014. "Non-market valuation in France: An overview of the research activity," Working Papers hal-01087365, HAL.
    18. repec:eee:resene:v:49:y:2017:i:c:p:48-61 is not listed on IDEAS
    19. Anne GASSIAT & Sylvain ROUSSET & Frèdèric ZAHM, 2011. "Improving water quality with a territorial agro-environmental policy? Insights from the new generation AES in South-West France," ERSA conference papers ersa10p1569, European Regional Science Association.
    20. Peter Howley & Stephen Hynes & Niall Farrelly & Eithne Murphy & Cathal O’Donoghue, 2008. "Conservation under the Irish Rural Environmental Protection Scheme: What land cover types are being protected?," Working Papers 0804, Rural Economy and Development Programme,Teagasc.
    21. Raghu, P.T. & Das, S. & Ravi, S.B. & King, E.D.I.O, 2012. "Use of Contingent Valuation to Assess Farmer Preference for On-farm Conservation of Minor Millets: Case from South India," MPRA Paper 43348, University Library of Munich, Germany.
    22. Stephen Hynes & Brian Cahill & Emma J. Dillon & Thia Hennessy & Eoghan Garvey, 2007. "A Panel Data Random Effects Model of Agri-Environment Programme Participation," Working Papers 0708, Rural Economy and Development Programme,Teagasc.
    23. 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.
    24. 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.

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