Does the risk attitude influence the farmers' willingness to participate in agri-environmental measures? – A normative approach to evaluate ecosystem services
Agri-environmental measures are often not as accepted among farmers as expected. The present study investigates whether changes in income risks and the individual risk attitudes of farmers may constitute an explanatory approach for the low acceptance of the measures. For this purpose, a normative model is developed that calculates the premia claimed by the farmers for adopting environmental measures under the consideration of income risks and different risk attitudes. We apply this model to environmental measures aiming at an increase of the faunistic diversity of species and show that changes in income risks and the decision makers’ risk attitudes can significantly influence farmers’ minimum compensation claims for the participation in agri-environmental measures.
|Date of creation:||2013|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: 0531 / 596 5501
Fax: 0531 / 596 5599
Web page: http://www.gewisola.de/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Cornelis Gardebroek & María Daniela Chavez & Alfons Oude Lansink, 2010. "Analysing Production Technology and Risk in Organic and Conventional Dutch Arable Farming using Panel Data," Journal of Agricultural Economics, Wiley Blackwell, vol. 61(1), pages 60-75.
- Charles A. Holt & Susan K. Laury, 2002. "Risk Aversion and Incentive Effects," American Economic Review, American Economic Association, vol. 92(5), pages 1644-1655, December.
- Chavas, Jean-Paul & Kim, Kwansoo & Lauer, Joseph G. & Klemme, Richard M. & Bland, William L., 2001. "An Economic Analysis Of Corn Yield, Corn Profitability, And Risk At The Edge Of The Corn Belt," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 26(01), July.
- Kerri Brick & Martine Visser & Justine Burns, 2011.
"Risk Aversion: Experimental Evidence from South African Fishing Communities,"
227, Economic Research Southern Africa.
- Kerri Brick & Martine Visser & Justine Burns, 2012. "Risk Aversion: Experimental Evidence from South African Fishing Communities," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 94(1), pages 133-152.
- Nadja El Benni & Robert Finger & Stefan Mann, 2012. "Effects of agricultural policy reforms and farm characteristics on income risk in Swiss agriculture," Agricultural Finance Review, Emerald Group Publishing, vol. 72(3), pages 301-324, September.
- Teresa Serra & David Zilberman & José M. Gil, 2008. "Differential uncertainties and risk attitudes between conventional and organic producers: the case of Spanish arable crop farmers," Agricultural Economics, International Association of Agricultural Economists, vol. 39(2), pages 219-229, 09.
- Barry K. Goodwin, 2009. "Payment Limitations and Acreage Decisions under Risk Aversion: A Simulation Approach," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(1), pages 19-41.
- Farber, Stephen C. & Costanza, Robert & Wilson, Matthew A., 2002. "Economic and ecological concepts for valuing ecosystem services," Ecological Economics, Elsevier, vol. 41(3), pages 375-392, June.
- Tyner, Wallace E. & Jacquet, Florence & Gray, Allan W., 2005. "Farm Income Stabilization: A Central Goal for American and European Policies," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24683, European Association of Agricultural Economists.
- Greiner, Romy & Patterson, Louisa & Miller, Owen, 2009. "Motivations, risk perceptions and adoption of conservation practices by farmers," Agricultural Systems, Elsevier, vol. 99(2-3), pages 86-104, February.
- Hans Binswanger, 1980. "Attitudes toward risk: Experimental measurement in rural india," Artefactual Field Experiments 00009, The Field Experiments Website.
- Salvatore Di Falco & Jean-Paul Chavas, 2006. "Crop genetic diversity, farm productivity and the management of environmental risk in rainfed agriculture," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 33(3), pages 289-314, September.
- Finger, Robert, 2012. "Biases in Farm-Level Yield Risk Analysis due to Data Aggregation," Journal of International Agricultural Trade and Development, Journal of International Agricultural Trade and Development, vol. 61(1).
When requesting a correction, please mention this item's handle: RePEc:ags:gewi13:156112. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)
If references are entirely missing, you can add them using this form.