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How to increase the effectiveness of agri-environmental subsidy schemes through knowledge of farmer perceptions-a choice experiment on pesticide free buffer zones

Author

Listed:
  • Christensen, Tove
  • Pedersen, Anders Branth
  • Nielsen, Helle Orstead
  • Morkbak, Morten Raun
  • Hasler, Berit
  • Denver, Sigrid

Abstract

Danish farmers have been far less interested in agri-environmental subsidy schemes than anticipated. We use choice experiments to estimate 486 Danish farmers’ preferences for a number of policy relevant scheme-characteristics. Subsidy schemes for pesticide free buffer zones along hedgerows are used as a case and analysed using a random parameter logit framework. By quantifying farmers’ preferences in monetary values, we are able to assess the relative importance of individual scheme-characteristics. Farmer’s assessments of the administrative burden are captured by estimating how they value free-of-charge assistance for the application procedure. To our knowledge, this measure of administrative burden has not been tested before. Our results indicate that payment size was perceived to be the most important scheme characteristic narrowly followed by flexible contract terms (an option to cancel the contract and contract length) and still of significant importance but less so are practical management restrictions (choice of buffer zone width, using fertilizer, and reduced administrative burden).

Suggested Citation

  • 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.
  • Handle: RePEc:ags:eaa120:109316
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    File URL: http://purl.umn.edu/109316
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    References listed on IDEAS

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    1. Louviere,Jordan J. & Hensher,David A. & Swait,Joffre D. With contributions by-Name:Adamowicz,Wiktor, 2000. "Stated Choice Methods," Cambridge Books, Cambridge University Press, number 9780521788304, March.
    2. Jürgen Meyerhoff & Ulf Liebe, 2009. "Status Quo Effect in Choice Experiments: Empirical Evidence on Attitudes and Choice Task Complexity," Land Economics, University of Wisconsin Press, vol. 85(3), pages 515-528.
    3. Wiktor Adamowicz & Peter Boxall & Michael Williams & Jordan Louviere, 1998. "Stated Preference Approaches for Measuring Passive Use Values: Choice Experiments and Contingent Valuation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(1), pages 64-75.
    4. Edi Defrancesco & Paola Gatto & Ford Runge & Samuele Trestini, 2008. "Factors Affecting Farmers' Participation in Agri-environmental Measures: A Northern Italian Perspective," Journal of Agricultural Economics, Wiley Blackwell, vol. 59(1), pages 114-131, February.
    5. Gerard Wynn & Bob Crabtree & Jacqueline Potts, 2001. "Modelling Farmer Entry into the Environmentally Sensitive Area Schemes in Scotland," Journal of Agricultural Economics, Wiley Blackwell, vol. 52(1), pages 65-82.
    6. Maria Espinosa-Goded & Jesús Barreiro-Hurlé & Eric Ruto, 2010. "What Do Farmers Want From Agri-Environmental Scheme Design? A Choice Experiment Approach," Journal of Agricultural Economics, Wiley Blackwell, vol. 61(2), pages 259-273.
    7. Adamowicz, Wiktor L. & Boxall, Peter C. & Williams, Michael & Louviere, Jordan, 1995. "Stated Preference Approaches for Measuring Passive Use Values: Choice Experiments versus Contingent Valuation," Staff Paper Series 24126, University of Alberta, Department of Resource Economics and Environmental Sociology.
    8. Eric Ruto & Guy Garrod, 2009. "Investigating farmers' preferences for the design of agri-environment schemes: a choice experiment approach," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 52(5), pages 631-647.
    9. Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74, pages 132-132.
    10. 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.
    11. Isabel Vanslembrouck & Guido Huylenbroeck & Wim Verbeke, 2002. "Determinants of the Willingness of Belgian Farmers to Participate in Agri-environmental Measures," Journal of Agricultural Economics, Wiley Blackwell, vol. 53(3), pages 489-511.
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