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Incentivising participation and spatial coordination in Payment for Ecosystem Service schemes: forest disease control programs in Finland

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  • Sheremet, Oleg
  • Ruokamo, Enni
  • Juttinen, Artti
  • Svento, Rauli
  • Hanley, Nick

Abstract

This paper considers the problem of designing PES-type contracts to encourage participation and spatial coordination amongst private forest owners in Finland. The aim of the policy is to increase efforts to mitigate risks from invasive forest pests and diseases. Such control actions yield spill-over benefits to other landowners and to wider society, meaning that the level of privately-optimal disease control is likely to be less than the socially-optimal level. The policy designer may wish to encourage spatial coordination in the uptake of such PES-type contracts, as spatial coordination delivers an increase in the effectiveness of control measures on disease risks. We conducted a choice experiment with private forest owners in Finland in October 2016. The study elicited the preferences of woodland owners with respect to the design of forest disease control contracts, and gauged their willingness to cooperate with neighbouring forest owners within the framework of such programs.

Suggested Citation

  • Sheremet, Oleg & Ruokamo, Enni & Juttinen, Artti & Svento, Rauli & Hanley, Nick, 2018. "Incentivising participation and spatial coordination in Payment for Ecosystem Service schemes: forest disease control programs in Finland," 92nd Annual Conference, April 16-18, 2018, Warwick University, Coventry, UK 273475, Agricultural Economics Society.
  • Handle: RePEc:ags:aesc18:273475
    DOI: 10.22004/ag.econ.273475
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    Cited by:

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    2. Paavola, Jouni & Primmer, Eeva, 2019. "Governing the Provision of Insurance Value From Ecosystems," Ecological Economics, Elsevier, vol. 164(C), pages 1-1.
    3. Juutinen, Artti & Tolvanen, Anne & Koskela, Terhi, 2020. "Forest owners' future intentions for forest management," Forest Policy and Economics, Elsevier, vol. 118(C).
    4. Mikołaj Czajkowski & Katarzyna Zagórska & Natalia Letki & Piotr Tryjanowski & Adam Wąs, 2019. "Drivers of farmers’ willingness to adopt extensive farming practices in a globally important bird area," Working Papers 2019-06, Faculty of Economic Sciences, University of Warsaw.
    5. Raviv, Orna & Tchetchik, Anat & Lotan, Alon & Izhaki, Ido & Zemah Shamir, Shiri, 2021. "Direct and indirect valuation of air-quality regulation service as reflected in the preferences towards distinct types of landscape in a biosphere reserve," Ecological Economics, Elsevier, vol. 180(C).
    6. Tavárez, Héctor & Elbakidze, Levan, 2019. "Valuing recreational enhancements in the San Patricio Urban Forest of Puerto Rico: A choice experiment approach," Forest Policy and Economics, Elsevier, vol. 109(C).

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    More about this item

    Keywords

    Agricultural and Food Policy; Environmental Economics and Policy;

    JEL classification:

    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
    • Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics

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