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Designing Agri-Environmental Schemes to cope with uncertainty

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  • Margaux Lapierre

    (CEE-M - Centre d'Economie de l'Environnement - Montpellier - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro - Montpellier SupAgro - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement)

  • Gwenolé Le Velly

    (CEE-M - Centre d'Economie de l'Environnement - Montpellier - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro - Montpellier SupAgro - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement)

  • Douadia Bougherara

    (CEE-M - Centre d'Economie de l'Environnement - Montpellier - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro - Montpellier SupAgro - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement)

  • Raphaële Préget

    (CEE-M - Centre d'Economie de l'Environnement - Montpellier - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro - Montpellier SupAgro - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement)

  • Alexandre Sauquet

    (CEE-M - Centre d'Economie de l'Environnement - Montpellier - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro - Montpellier SupAgro - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement)

Abstract

One of the factors that discourages farmers from enrolling in agro-environmental schemes (AES) is the uncertainty of the costs and benefits associated with the adoption of the new practices. In this study, we distinguish between the "internal uncertainty" that is related to the characteristics of the farmer and his/her parcels and "external uncertainty", which is related to the occurrence of external events. We propose three innovations to better account for uncertainty in AES design and test their attractiveness through a choice experiment. We find that proposing contracts that allow suspending the conditions of the contract for one year enhances participation.

Suggested Citation

  • Margaux Lapierre & Gwenolé Le Velly & Douadia Bougherara & Raphaële Préget & Alexandre Sauquet, 2021. "Designing Agri-Environmental Schemes to cope with uncertainty," Working Papers hal-03349026, HAL.
    • Handle: RePEc:hal:wpaper:hal-03349026
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    More about this item

    Keywords

    Agri-environmental Measures; Uncertainty; Flexibility; Choice Experiment; Herbicides; Cover Crops; Winegrowing;
    All these keywords.

    JEL classification:

    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty

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