IDEAS home Printed from https://ideas.repec.org/p/ags/aes026/397892.html

Farmers’ Preferences for the Design of an Agglomeration Bonus in the Context of Peatland Restoration

Author

Listed:
  • Langanke, Nils L.
  • Grunenberg, Michael H.
  • Latacz-Lohmann, Uwe

Abstract

This paper investigates how the design of an agglomeration bonus influences farmers’ participation in a stylised peatland restoration scheme. Results from a discrete choice experiment with 110 farmers in Germany indicate that the bonus has only limited influence compared to land-use restrictions. In the mixed logit and latent class estimations the bonus is statistically insignificant and mostly ignored in the decision-making process. Only when preferences are adjusted for attribute non-attendance does the bonus enhance willingness to participate and the scheme’s cost-effectiveness. Overall, voluntary schemes appear insufficient for ambitious peatland restoration goals, suggesting a need to complement incentives with regulatory measures.

Suggested Citation

  • Langanke, Nils L. & Grunenberg, Michael H. & Latacz-Lohmann, Uwe, 2026. "Farmers’ Preferences for the Design of an Agglomeration Bonus in the Context of Peatland Restoration," 100th Annual Conference, March 23-25, 2026, Wadham College, University of Oxford, Oxford, UK 397892, Agricultural Economics Society (AES).
    • Handle: RePEc:ags:aes026:397892
    DOI: 10.22004/ag.econ.397892
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/397892/files/Uwe_Latacz-Lohmann_FarmersPreferenceAggloBonus_final_AES.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.397892?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Chi Nguyen & Uwe Latacz‐Lohmann & Nick Hanley, 2024. "Landscape‐level determinants of the performance of an agglomeration bonus in conservation auctions," Journal of Agricultural Economics, Wiley Blackwell, vol. 75(2), pages 592-616, June.
    2. Banerjee, Simanti & Kwasnica, Anthony M. & Shortle, James S., 2012. "Agglomeration bonus in small and large local networks: A laboratory examination of spatial coordination," Ecological Economics, Elsevier, vol. 84(C), pages 142-152.
    3. Hole, Arne Risa, 2011. "A discrete choice model with endogenous attribute attendance," Economics Letters, Elsevier, vol. 110(3), pages 203-205, March.
    4. Smith, Rodney B. W. & Shogren, Jason F., 2002. "Voluntary Incentive Design for Endangered Species Protection," Journal of Environmental Economics and Management, Elsevier, vol. 43(2), pages 169-187, March.
    5. Uwe Latacz-Lohmann & Gunnar Breustedt, 2019. "Using choice experiments to improve the design of agri-environmental schemes," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 46(3), pages 495-528.
    6. Raina, Nidhi & Zavalloni, Matteo & Targetti, Stefano & D'Alberto, Riccardo & Raggi, Meri & Viaggi, Davide, . "A systematic review of attributes used in choice experiments for agri-environmental contracts," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 10(2).
    7. Stine Broch & Suzanne Vedel, 2012. "Using Choice Experiments to Investigate the Policy Relevance of Heterogeneity in Farmer Agri-Environmental Contract Preferences," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 51(4), pages 561-581, April.
    8. Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74(2), pages 132-132.
    9. Hole, Arne Risa & Kolstad, Julie Riise & Gyrd-Hansen, Dorte, 2013. "Inferred vs. stated attribute non-attendance in choice experiments: A study of doctors’ prescription behaviour," Journal of Economic Behavior & Organization, Elsevier, vol. 96(C), pages 21-31.
    10. Fredrik Carlsson & Peter Martinsson, 2003. "Design techniques for stated preference methods in health economics," Health Economics, John Wiley & Sons, Ltd., vol. 12(4), pages 281-294, April.
    11. Nguyen, Chi & Latacz-Lohmann, Uwe & Hanley, Nick & Schilizzi, Steven & Iftekhar, Sayed, 2022. "Spatial Coordination Incentives for landscape-scale environmental management: A systematic review," Land Use Policy, Elsevier, vol. 114(C).
    12. Stephane Hess & David Hensher, 2013. "Making use of respondent reported processing information to understand attribute importance: a latent variable scaling approach," Transportation, Springer, vol. 40(2), pages 397-412, February.
    13. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521747387.
    14. Petr Mariel & David Hoyos & Jürgen Meyerhoff & Mikolaj Czajkowski & Thijs Dekker & Klaus Glenk & Jette Bredahl Jacobsen & Ulf Liebe & Søren Bøye Olsen & Julian Sagebiel & Mara Thiene, 2021. "Environmental Valuation with Discrete Choice Experiments," SpringerBriefs in Economics, Springer, number 978-3-030-62669-3, January.
    15. Araña, Jorge E. & León, Carmelo J., 2009. "Understanding the use of non-compensatory decision rules in discrete choice experiments: The role of emotions," Ecological Economics, Elsevier, vol. 68(8-9), pages 2316-2326, June.
    16. Riccardo Scarpa & Mara Thiene & David A. Hensher, 2010. "Monitoring Choice Task Attribute Attendance in Nonmarket Valuation of Multiple Park Management Services: Does It Matter?," Land Economics, University of Wisconsin Press, vol. 86(4), pages 817-839.
    17. Parkhurst, Gregory M. & Shogren, Jason F. & Bastian, Chris & Kivi, Paul & Donner, Jennifer & Smith, Rodney B. W., 2002. "Agglomeration bonus: an incentive mechanism to reunite fragmented habitat for biodiversity conservation," Ecological Economics, Elsevier, vol. 41(2), pages 305-328, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Chen, Xuqi & Shen, Meng & Gao, Zhifeng, "undated". "Impact of Intra-respondent Variations in Attribute Attendance on Consumer Preference in Food Choice," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258509, Agricultural and Applied Economics Association.
    2. Richartz, P. Christoph & Abdulai, Awudu & Kornher, Lukas, . "Attribute Non Attendance and Consumer Preferences for Online Food Products in Germany," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 69(01).
    3. Kassie, Girma T. & Zeleke, Fresenbet & Birhanu, Mulugeta Y. & Scarpa, Riccardo, 2020. "Reminder Nudge, Attribute Nonattendance, and Willingness to Pay in a Discrete Choice Experiment," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304208, Agricultural and Applied Economics Association.
    4. Krucien, Nicolas & Ryan, Mandy & Hermens, Frouke, 2017. "Visual attention in multi-attributes choices: What can eye-tracking tell us?," Journal of Economic Behavior & Organization, Elsevier, vol. 135(C), pages 251-267.
    5. Gonçalves, Tânia & Lourenço-Gomes, Lina & Pinto, Lígia M. Costa, 2022. "The role of attribute non-attendance on consumer decision-making: Theoretical insights and empirical evidence," Economic Analysis and Policy, Elsevier, vol. 76(C), pages 788-805.
    6. Macario Rodríguez‐Entrena & Anastasio J. Villanueva & José A. Gómez‐Limón, 2019. "Unraveling determinants of inferred and stated attribute nonattendance: Effects on farmers’ willingness to accept to join agri‐environmental schemes," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 67(1), pages 31-52, March.
    7. Espinosa-Goded, María & Rodriguez-Entrena, Macario & Salazar-Ordóñez, Melania, 2021. "A straightforward diagnostic tool to identify attribute non-attendance in discrete choice experiments," Economic Analysis and Policy, Elsevier, vol. 71(C), pages 211-226.
    8. Drechsler, Martin, 2025. "Learning coalition formation under an agglomeration bonus: Impacts on coalition structure and scheme performance," Resource and Energy Economics, Elsevier, vol. 83(C).
    9. Azucena Gracia & Miguel I. Gómez & Petjon Ballco, 2025. "Market Opportunities for Differentiated Locally Grown Fresh Produce: Understanding Consumer Preferences," Sustainability, MDPI, vol. 17(9), pages 1-24, April.
    10. Yegoryan, Narine & Guhl, Daniel & Klapper, Daniel, 2018. "Inferring Attribute Non-Attendance Using Eye Tracking in Choice-Based Conjoint Analysis," Rationality and Competition Discussion Paper Series 111, CRC TRR 190 Rationality and Competition.
    11. Hole, Arne Risa & Kolstad, Julie Riise & Gyrd-Hansen, Dorte, 2013. "Inferred vs. stated attribute non-attendance in choice experiments: A study of doctors’ prescription behaviour," Journal of Economic Behavior & Organization, Elsevier, vol. 96(C), pages 21-31.
    12. Collins, Andrew T. & Rose, John M. & Hensher, David A., 2013. "Specification issues in a generalised random parameters attribute nonattendance model," Transportation Research Part B: Methodological, Elsevier, vol. 56(C), pages 234-253.
    13. Nguyen, Thanh Cong & Robinson, Jackie & Whitty, Jennifer A. & Kaneko, Shinji & Nguyen, The Chinh, 2015. "Attribute non-attendance in discrete choice experiments: A case study in a developing country," Economic Analysis and Policy, Elsevier, vol. 47(C), pages 22-33.
    14. Canessa, Carolin & Venus, Terese & Wiesmeier, Miriam & Mennig, Philipp & Sauer, Johannes, 2023. "Farmers’ preferences over alternative AECS designs. Do the ecological conditions influence the willingness to accept result-based contracts?," 97th Annual Conference, March 27-29, 2023, Warwick University, Coventry, UK 334508, Agricultural Economics Society - AES.
    15. Misal, Haleema & Varela, Elsa & Voulgarakis, Apostolos & Rovithakis, Anastasios & Grillakis, Manolis & Kountouris, Yiannis, 2023. "Assessing public preferences for a wildfire mitigation policy in Crete, Greece," Forest Policy and Economics, Elsevier, vol. 153(C).
    16. Robert J. Johnston & Kevin J. Boyle & Wiktor (Vic) Adamowicz & Jeff Bennett & Roy Brouwer & Trudy Ann Cameron & W. Michael Hanemann & Nick Hanley & Mandy Ryan & Riccardo Scarpa & Roger Tourangeau & Ch, 2017. "Contemporary Guidance for Stated Preference Studies," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 4(2), pages 319-405.
    17. Díaz, Verónica & Montoya, Ricardo & Maldonado, Sebastián, 2023. "Preference estimation under bounded rationality: Identification of attribute non-attendance in stated-choice data using a support vector machines approach," European Journal of Operational Research, Elsevier, vol. 304(2), pages 797-812.
    18. Canessa, Carolin & Venus, Terese E. & Wiesmeier, Miriam & Mennig, Philipp & Sauer, Johannes, 2023. "Incentives, Rewards or Both in Payments for Ecosystem Services: Drawing a Link Between Farmers' Preferences and Biodiversity Levels," Ecological Economics, Elsevier, vol. 213(C).
    19. DeLong, Karen L. & Syrengelas, Konstantinos G. & Grebitus, Carola & Nayga, Rodolfo M., 2021. "Visual versus Text Attribute Representation in Choice Experiments," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 94(C).
    20. Nguyen, Chi & Latacz-Lohmann, Uwe & Hanley, Nick & Iftekhar, Sayed, 2025. "Conservation auctions for landscape-scale environmental management: Does spatial configuration matter for economic and ecological outcomes?," Ecological Economics, Elsevier, vol. 230(C).

    More about this item

    Keywords

    ;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:aes026:397892. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aesukea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.