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Compensating environmental losses versus creating environmental gains: implications for biodiversity offsets

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  • Philippe Le Coent

    (LAMETA - Laboratoire Montpelliérain d'Économie Théorique et Appliquée - UM1 - Université Montpellier 1 - UPVM - Université Paul-Valéry - Montpellier 3 - INRA - Institut National de la Recherche Agronomique - Montpellier SupAgro - Centre international d'études supérieures en sciences agronomiques - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier, UM - Université de Montpellier)

  • Raphaële Préget

    (LAMETA - Laboratoire Montpelliérain d'Économie Théorique et Appliquée - UM1 - Université Montpellier 1 - UPVM - Université Paul-Valéry - Montpellier 3 - INRA - Institut National de la Recherche Agronomique - Montpellier SupAgro - Centre international d'études supérieures en sciences agronomiques - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier)

  • Sophie Thoyer

    (LAMETA - Laboratoire Montpelliérain d'Économie Théorique et Appliquée - UM1 - Université Montpellier 1 - UPVM - Université Paul-Valéry - Montpellier 3 - INRA - Institut National de la Recherche Agronomique - Montpellier SupAgro - Centre international d'études supérieures en sciences agronomiques - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier, Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier)

Abstract

In the economic literature on the motivations underlying voluntary contributions to environmental public goods, little attention is granted to the way the overall objective of the environmental program is framed. A program which contributes to an increase of environmental quality can be perceived differently from a program designed to bring back the environmental quality to its original level, after it was damaged by human intervention. How does it impact participation rates and contribution levels? This paper addresses this issue in the context of agri-environmental schemes for biodiversity conservation. It compares farmers' willingness to participate in two contracts, one being framed as part of a biodiversity offset program, the other one as part of a biodiversity conservation program. We demonstrate with a discrete choice experiment that biodiversity-offsets programs need to offer a higher payment to enroll farmers compared to biodiversity conservation programs. This result is essentially driven by farmers who declare to have organic practices.

Suggested Citation

  • Philippe Le Coent & Raphaële Préget & Sophie Thoyer, 2017. "Compensating environmental losses versus creating environmental gains: implications for biodiversity offsets," Post-Print hal-01607967, HAL.
    • Handle: RePEc:hal:journl:hal-01607967
    DOI: 10.1016/j.ecolecon.2017.06.008
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    Cited by:

    1. D'Alberto, R. & Targetti, S. & Schaller, L. & Bartolini, F. & Eichhorn, T. & Haltia, E. & Harmanny, K. & Le Gloux, F. & Nikolov, D. & Runge, T. & Vergamini, D. & Viaggi, D., 2024. "A European perspective on acceptability of innovative agri-environment-climate contract solutions," Land Use Policy, Elsevier, vol. 141(C).
    2. Chen, Zhu & Zhang, Anlu & Zhou, Kehao & Huang, Lingxiang, 2021. "Can payment tools substitute for regulatory ones? Estimating the policy preference for agricultural land preservation, Tianjin, China," Land Use Policy, Elsevier, vol. 100(C).
    3. Vaissière, Anne-Charlotte & Quétier, Fabien & Calvet, Coralie & Levrel, Harold & Wunder, Sven, 2020. "Biodiversity offsets and payments for environmental services: Clarifying the family ties," Ecological Economics, Elsevier, vol. 169(C).
    4. Sponagel, Christian & Angenendt, Elisabeth & Piepho, Hans-Peter & Bahrs, Enno, 2021. "Farmers’ preferences for nature conservation compensation measures with a focus on eco-accounts according to the German Nature Conservation Act," Land Use Policy, Elsevier, vol. 104(C).
    5. Sponagel, Christian & Bendel, Daniela & Angenendt, Elisabeth & Weber, Tobias Karl David & Gayler, Sebastian & Streck, Thilo & Bahrs, Enno, 2022. "Integrated assessment of regional approaches for biodiversity offsetting in urban-rural areas – A future based case study from Germany using arable land as an example," Land Use Policy, Elsevier, vol. 117(C).
    6. Philippe Le Coent & Coralie Calvet, 2016. "Challenges of achieving biodiversity offsetting through agri-environmental schemes: evidence from an empirical study," Working Papers 16-10, LAMETA, Universtiy of Montpellier.
    7. 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).
    8. Christian Sponagel & Andre Raichle & Martin Maier & Susanne Zhuber-Okrog & Ulrike Greifenhagen-Kauffmann & Elisabeth Angenendt & Enno Bahrs, 2021. "Expert-Based Maps as a Regional Planning Tool Supporting Nature Conservation and Production-Integrated Compensation—A German Case Study on Biodiversity Offsets," Land, MDPI, vol. 10(8), pages 1-21, August.
    9. Sergei Schaub & Jaboury Ghazoul & Robert Huber & Wei Zhang & Adelaide Sander & Charles Rees & Simanti Banerjee & Robert Finger, 2023. "The role of behavioural factors and opportunity costs in farmers' participation in voluntary agri‐environmental schemes: A systematic review," Journal of Agricultural Economics, Wiley Blackwell, vol. 74(3), pages 617-660, September.
    10. Fanny Le Gloux & Carole Ropars-Collet & Alice Issanchou & Pierre Dupraz, 2025. "Payments for environmental services with ecological thresholds: farmers’ preferences for a sponsorship bonus," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 68(9), pages 2042-2069, July.
    11. François J Dessart & Jesús Barreiro-Hurlé & René van Bavel, 2019. "Behavioural factors affecting the adoption of sustainable farming practices: a policy-oriented review," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 46(3), pages 417-471.
    12. Peng Zhang & Guojin Qin & Yihuan Wang, 2018. "Optimal Maintenance Decision Method for Urban Gas Pipelines Based on as Low as Reasonably Practicable Principle," Sustainability, MDPI, vol. 11(1), pages 1-19, December.
    13. Balaine, Lorraine & Gallai, Nicola & Del Corso, Jean-Pierre & Kephaliacos, Charilaos, 2020. "Trading off environmental goods for compensations: Insights from traditional and deliberative valuation methods in the Ecuadorian Amazon," Ecosystem Services, Elsevier, vol. 43(C).
    14. Brown, Calum & Kovács, Eszter & Herzon, Irina & Villamayor-Tomas, Sergio & Albizua, Amaia & Galanaki, Antonia & Grammatikopoulou, Ioanna & McCracken, Davy & Olsson, Johanna Alkan & Zinngrebe, Yves, 2021. "Simplistic understandings of farmer motivations could undermine the environmental potential of the common agricultural policy," Land Use Policy, Elsevier, vol. 101(C).
    15. Christoph Schulze & Katarzyna Zagórska & Kati Häfner & Olimpia Markiewicz & Mikołaj Czajkowski & Bettina Matzdorf, 2024. "Using farmers' ex ante preferences to design agri‐environmental contracts: A systematic review," Journal of Agricultural Economics, Wiley Blackwell, vol. 75(1), pages 44-83, February.
    16. Calvet, Coralie & Le Coent, Philippe & Napoleone, Claude & Quétier, Fabien, 2019. "Challenges of achieving biodiversity offset outcomes through agri-environmental schemes: Evidence from an empirical study in Southern France," Ecological Economics, Elsevier, vol. 163(C), pages 113-125.
    17. Millon, Lara & Barré, Kévin & Julliard, Romain & Compère, Pierre & Kerbiriou, Christian, 2021. "Calculation of biodiversity level between different land-uses to improve conservation outcomes of biodiversity offsetting," Land Use Policy, Elsevier, vol. 101(C).
    18. Peng Zhang & Guojin Qin & Yihuan Wang, 2019. "Risk Assessment System for Oil and Gas Pipelines Laid in One Ditch Based on Quantitative Risk Analysis," Energies, MDPI, vol. 12(6), pages 1-21, March.

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    JEL classification:

    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics

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