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Agri-environment contract adoption under fixed and variable compliance costs

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  • Geraldine Ducos
  • Pierre Dupraz
  • Francois Bonnieux

Abstract

This paper analyses the heterogeneity of compliance costs on farmers' choices to participate in agri-environment schemes. The theoretical distinction between fixed and variable costs is used to explain why factors that determine participation may differ from those which determine how much land participants enrol in a scheme. The level of fixed costs may explain why the smallest farms tend to be least likely to participate in such schemes. The empirical analysis presented in the paper compares models estimated with and without the hypothesis of negligible fixed costs. It also discusses the situation where the nature of costs can be identified and isolated. The results show that in the presence of fixed compliance costs, fixed transaction costs are a significant contracting barrier for smallest farms.

Suggested Citation

  • Geraldine Ducos & Pierre Dupraz & Francois Bonnieux, 2009. "Agri-environment contract adoption under fixed and variable compliance costs," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 52(5), pages 669-687.
  • Handle: RePEc:taf:jenpmg:v:52:y:2009:i:5:p:669-687 DOI: 10.1080/09640560902958248
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    Cited by:

    1. Sarah Schomers & Bettina Matzdorf & Claas Meyer & Claudia Sattler, 2015. "How Local Intermediaries Improve the Effectiveness of Public Payment for Ecosystem Services Programs: The Role of Networks and Agri-Environmental Assistance," Sustainability, MDPI, Open Access Journal, vol. 7(10), pages 1-31, October.
    2. Coggan, Anthea & Buitelaar, Edwin & Whitten, Stuart & Bennett, Jeff, 2013. "Factors that influence transaction costs in development offsets: Who bears what and why?," Ecological Economics, Elsevier, vol. 88(C), pages 222-231.
    3. Pavel Ciaian & Maria Espinosa & Sergio Gomez y Paloma & Stephen Langrell & Kamel Louhichi & Thierry Vard & Thomas Heckelei & Paolo Sckokai & Alban Thomas, 2013. "Farm-household investment behaviour and the CAP decoupling: Methodological issues in assessing policy impacts," JRC Working Papers JRC79969, Joint Research Centre (Seville site).
    4. repec:eee:ecolec:v:142:y:2017:i:c:p:120-129 is not listed on IDEAS
    5. Chabé-Ferret, Sylvain & Subervie, Julie, 2013. "How much green for the buck? Estimating additional and windfall effects of French agro-environmental schemes by DID-matching," Journal of Environmental Economics and Management, Elsevier, vol. 65(1), pages 12-27.
    6. Coralie Calvet & Philippe Le Coënt & Claude Napoleone & Fabien Quetier, 2017. "Challenges of achieving biodiversity offset outcomes through agri-environmental schemes: evidence from an empirical study in Southern France »," Working Papers 17-05, LAMETA, Universtiy of Montpellier.
    7. Kuhfuss, Laure & Jacquet, Florence & Preget, Raphaële & Thoyer, Sophie, 2012. "Le dispositif des MAEt pour l’enjeu eau : une fausse bonne idée ?," Revue d'Etudes en Agriculture et Environnement, Editions NecPlus, pages 395-422.
    8. Fabio Bartolini & Gianluca Brunori & Laura Fastelli & Massimo Rovai, 2013. "Understanding the participation in agri-environmental schemes: evidence from Tuscany Region," ERSA conference papers ersa13p1084, European Regional Science Association.
    9. Laure Kuhfuss & Raphaële Préget & Sophie Thoyer & Nick Hanley, 2015. "Nudging farmers to sign agri-environmental contracts: the effects of a collective bonus," Discussion Papers in Environment and Development Economics 2015-06, University of St. Andrews, School of Geography and Sustainable Development.
    10. Le Coent, Philippe & Préget, Raphaële & Thoyer, Sophie, 2017. "Compensating Environmental Losses Versus Creating Environmental Gains: Implications for Biodiversity Offsets," Ecological Economics, Elsevier, pages 120-129.
    11. repec:eee:agisys:v:154:y:2017:i:c:p:34-44 is not listed on IDEAS
    12. Mundaca, Luis & Mansoz, Mathilde & Neij, Lena & Timilsina, Govinda R, 2013. "Transaction costs of low-carbon technologies and policies : the diverging literature," Policy Research Working Paper Series 6565, The World Bank.
    13. Christensen, Tove & Pedersen, Anders Branth & Nielsen, Helle Orstead & Morkbak, Morten Raun & Hasler, Berit & Denver, Sigrid, 2010. "How to increase the effectiveness of agri-environmental subsidy schemes through knowledge of farmer perceptions-a choice experiment on pesticide free buffer zones," 120th Seminar, September 2-4, 2010, Chania, Crete 109316, European Association of Agricultural Economists.
    14. Viaggi, Davide & Raggi, Meri & Gomez y Paloma, Sergio, 2011. "Farm-household investment behaviour and the CAP decoupling: Methodological issues in assessing policy impacts," Journal of Policy Modeling, Elsevier, vol. 33(1), pages 127-145, January.
    15. Cathie Laroche Dupraz & Carole Ropars Collet, 2010. "Characterizing demand for domestic versus imported chicken in developing countries: the case of Haiti and Cameroon," Working Papers SMART - LERECO 10-03, INRA UMR SMART-LERECO.
    16. Coggan, Anthea & Whitten, Stuart M. & Bennett, Jeff, 2010. "Influences of transaction costs in environmental policy," Ecological Economics, Elsevier, vol. 69(9), pages 1777-1784, July.
    17. Mettepenningen, E. & Beckmann, V. & Eggers, J., 2011. "Public transaction costs of agri-environmental schemes and their determinants--Analysing stakeholders' involvement and perceptions," Ecological Economics, Elsevier, vol. 70(4), pages 641-650, February.
    18. Kaczan, David & Swallow, Brent M. & Adamowicz, W.L. (Vic), 2013. "Designing a payments for ecosystem services (PES) program to reduce deforestation in Tanzania: An assessment of payment approaches," Ecological Economics, Elsevier, vol. 95(C), pages 20-30.
    19. Christensen, Tove & Pedersen, Anders Branth & Nielsen, Helle Oersted & Mørkbak, Morten Raun & Hasler, Berit & Denver, Sigrid, 2011. "Determinants of farmers' willingness to participate in subsidy schemes for pesticide-free buffer zones--A choice experiment study," Ecological Economics, Elsevier, vol. 70(8), pages 1558-1564, June.
    20. Eory, Vera, 2015. "Evaluating the use of marginal abatement cost curves applied to greenhouse gas abatement in agriculture," Working Papers 199777, Scotland's Rural College (formerly Scottish Agricultural College), Land Economy & Environment Research Group.
    21. Eory, Vera, 2015. "Evaluating the use of marginal abatement cost curves applied to greenhouse gas abatement in agriculture," Working Papers 199777, Scottish Agricultural College, Land Economy Research Group.

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