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Agri-environmental Policies and Public Goods: An Assessment of Coalition Incentives and Minimum Participation Rules

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  • Matteo Zavalloni

    (University of Bologna)

  • Meri Raggi

    (University of Bologna)

  • Davide Viaggi

    (University of Bologna)

Abstract

An increasing number of papers analyse the inclusion of collective/spatial conditionality constraints in agricultural policies dealing with natural resource management. In this article we theoretically assess the conditions in which employing collective conditionality constraints linked to incentives better reach the social preferences on PG provision by agriculture. We deal with this issue by using a coalition formation model to endogenize the size of the group of farmers cooperating, and investigate how it is affected by different policy schemes. We analyse and compare the following policy schemes: (1) a homogenous payment that target the whole population of farmers, (2) a coalition bonus, that incentivizes only the contributions by the coalition members, and (3) a coalition bonus associated to a MPR on the size of the coalition. The results show that formulating payments that discriminate between co-operators and free-riders, and associating to such a payment a MPR, is relatively more effective than the traditional homogenous payments. However this is true only under some (local) conditions that we theoretically derived.

Suggested Citation

  • Matteo Zavalloni & Meri Raggi & Davide Viaggi, 2019. "Agri-environmental Policies and Public Goods: An Assessment of Coalition Incentives and Minimum Participation Rules," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 72(4), pages 1023-1040, April.
    • Handle: RePEc:kap:enreec:v:72:y:2019:i:4:d:10.1007_s10640-018-0237-9
    DOI: 10.1007/s10640-018-0237-9
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    Cited by:

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    2. Lingyan Xu & Zhuoyun Zhou & Jianguo Du, 2020. "An Evolutionary Game Model for the Multi-Agent Co-Governance of Agricultural Non-Point Source Pollution Control under Intensive Management Pattern in China," IJERPH, MDPI, vol. 17(7), pages 1-19, April.
    3. Le Gloux, Fanny & Dupraz, Pierre & Issanchou, Alice & Ropars-Collet, Carole, 2022. "Payments for environmental services with provision thresholds: farmers’ preferences for a conditional bonus," 96th Annual Conference, April 4-6, 2022, K U Leuven, Belgium 321177, Agricultural Economics Society - AES.
    4. Fabio Bartolini & Daniele Vergamini, 2019. "Understanding the Spatial Agglomeration of Participation in Agri-Environmental Schemes: The Case of the Tuscany Region," Sustainability, MDPI, vol. 11(10), pages 1-18, May.
    5. François Bareille & Matteo Zavalloni & Davide Viaggi, 2023. "Agglomeration bonus and endogenous group formation," American Journal of Agricultural Economics, John Wiley & Sons, vol. 105(1), pages 76-98, January.
    6. Rita Vilkė & Živilė Gedminaitė‐Raudonė & Tomas Baležentis & Dalia Štreimikienė, 2021. "Farmers' awareness of eco‐efficiency and cleaner production as environmental responsibility: Lithuanian case," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(1), pages 288-298, January.
    7. Drechsler, Martin, 2023. "Ecological and economic trade-offs between amount and spatial aggregation of conservation and the cost-effective design of coordination incentives," Ecological Economics, Elsevier, vol. 213(C).
    8. Francois Bareille & Matteo Zavalloni & Meri Raggi & Davide Viaggi, 2021. "Cooperative Management of Ecosystem Services: Coalition Formation, Landscape Structure and Policies," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 79(2), pages 323-356, June.
    9. Galioto, Francesco & Musotti, Francesco, 2023. "The governance of agricultural lands in marginal areas: A conceptual framework," Ecological Economics, Elsevier, vol. 212(C).
    10. Erik Ansink & Hans-Peter Weikard, 2018. "Common pool resources: Is there support for conservationists?," Tinbergen Institute Discussion Papers 18-083/VIII, Tinbergen Institute.
    11. Bareille, Francois & Boussard, Hugues & Thenail, Claudine, 2020. "Productive ecosystem services and collective management: Lessons from a realistic landscape model," Ecological Economics, Elsevier, vol. 169(C).
    12. Bate, Andrew M. & Jones, Glyn & Kleczkowski, Adam & Touza, Julia, 2021. "Modelling the effectiveness of collaborative schemes for disease and pest outbreak prevention," Ecological Modelling, Elsevier, vol. 442(C).

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