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

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

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

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

Volume (Year): 25 (2003)
Issue (Month): 2 (June)
Pages: 171-189

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Handle: RePEc:kap:enreec:v:25:y:2003:i:2:p:171-189
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  1. Delvaux & Henry de Frahan & Dupraz & Vermersch, 1999. "Adoption d'une MAE et consentement à recevoir des agriculteurs en région wallone," Working Papers 156444, Institut National de la Recherche Agronomique, France.
  2. Robert D. Weaver, 1996. "Prosocial Behavior: Private Contributions to Agriculture's Impact on the Environment," Land Economics, University of Wisconsin Press, vol. 72(2), pages 231-247.
  3. Pierre Dupraz & Dominique Vermersch & Lionel Delvaux & Bruno Henry de Frahan, 1999. "Adoption d'une MAE et consentement à recevoir des agriculteurs en région wallone," Économie rurale, Programme National Persée, vol. 249(1), pages 71-81.
  4. 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.
  5. F. Bonnieux & P. Rainelli & D. Vermersch, 1998. "Estimating the Supply of Environmental Benefits by Agriculture: A French Case Study," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 11(2), pages 135-153, March.
  6. 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.
  7. Uwe Latacz-Lohmann & Carel Van der Hamsvoort, 1997. "Auctioning Conservation Contracts: A Theoretical Analysis and an Application," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(2), pages 407-418.
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