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Farmers’ preferences over conservation contract flexibility and duration: an estimation of the effect of transaction costs using choice experiment

Author

Listed:
  • Douadia Bougherara

    (Économie et Sociologie Rurales - INRA - Institut National de la Recherche Agronomique)

  • Geraldine Ducos

    (Économie et Sociologie Rurales - INRA - Institut National de la Recherche Agronomique)

  • . European School On New Institutional Economics

    (ESNIE - European School on New Institutional Economics)

Abstract

In this article, we analyze farmers' preferences for variations in three conservation contract attributes, namely flexibility, duration and bureaucratic tasks. Assuming farmers' preferences to be directly related to their profit variation, we present the different trade-offs associated to each attribute independently. We then show how the choice experiment methodology allows (i) to provide new empirical tests exempt from some endogeneity issues, (ii) to elicit the role of transaction costs on farmers' preferences, and (iii) to estimate and disentangle the effect of transaction costs on farmers' preferences. The empirical analysis is based on an experiment among 171 French farmers in 2005. Results highlight the role of transaction costs in farmers' preferences, among them, the effect of maladaptation costs is predominant.

Suggested Citation

  • Douadia Bougherara & Geraldine Ducos & . European School On New Institutional Economics, 2006. "Farmers’ preferences over conservation contract flexibility and duration: an estimation of the effect of transaction costs using choice experiment," Post-Print hal-01939954, HAL.
    • Handle: RePEc:hal:journl:hal-01939954
    Note: View the original document on HAL open archive server: https://hal.science/hal-01939954
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    Citations

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    Cited by:

    1. Reise, Christian & Liebe, Ulf & Mußhoff, Oliver, 2012. "Präferenzen von Landwirten bei der Gestaltung von Substratlieferverträgen für Biogasanlagen: Ein Choice-Experiment," Journal of International Agricultural Trade and Development, Journal of International Agricultural Trade and Development, vol. 61(3).
    2. Mélanie Jaeck & Robert Lifran, 2009. "Preferences, Norms and Constraints in farmers' agro-ecological choices. Case study using choice experiments survey in the Rhone River Delta, France," Working Papers 09-16, LAMETA, Universtiy of Montpellier, revised Dec 2009.
    3. 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.
    4. Le Gloux, Fanny & Dupraz, Pierre & Issanchou, Alice & Ropars-Collet, Carole, 2022. "Payments for environmental services with provision thresholds: farmers’ preferences for a conditional bonus," 96th Annual Conference, April 4-6, 2022, K U Leuven, Belgium 321177, Agricultural Economics Society - AES.
    5. Schreiner, Julia Anette, 2018. "Saving the breeds: German Farmers’ preferences for Endangered Dairy Breed conservation programs," 2018 International European Forum (163rd EAAE Seminar), February 5-9, 2018, Innsbruck-Igls, Austria 276866, International European Forum on System Dynamics and Innovation in Food Networks.
    6. Gaetano Martino & Paolo Polinori, 2011. "Productive process innovation as sequential adjustment of the hybrid governance structure: the case of the poultry sector," Quaderni del Dipartimento di Economia, Finanza e Statistica 88/2011, Università di Perugia, Dipartimento Economia.
    7. Sagebiel, Julian & Müller, Jakob R. & Rommel, Jens, 2013. "Are Consumers Willing to Pay More for Electricity from Cooperatives? Results from an Online Choice Experiment in Germany," MPRA Paper 52385, University Library of Munich, Germany.
    8. Reise, Christian & Liebe, Ulf & Mußhoff, Oliver, 2012. "Präferenzen von Landwirten bei der Gestaltung von Substratlieferverträgen für Biogasanlagen: Ein Choice-Experiment," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 61(03), pages 1-16, August.

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