IDEAS home Printed from https://ideas.repec.org/p/lam/wpaper/07-16.html
   My bibliography  Save this paper

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

Author

Listed:
  • Philippe Le Coent
  • Raphaelle Préget
  • Sophie Thoyer

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, even if net environmental gain is equivalent in both programs. How does it impact participation rates and contribution levels? This paper addresses this issue in the context of agri-environmental contracts for biodiversity conservation. It compares farmers’ willingness to participate in two equivalent agri-environmental schemes, one being framed as part of a biodiversity offset program, the other one as a biodiversity conservation program. We demonstrate with a discrete choice experiment that biodiversity –offsets programs must offer a greater payment to enroll farmers compared to the latter. This is explained by the sensitivity of farmers to environmental issues.

Suggested Citation

  • Philippe Le Coent & Raphaelle Préget & Sophie Thoyer, 2016. "Compensating environmental losses versus creating environmental gains: Implications for biodiversity offsets," Working Papers 07-16, LAMETA, Universtiy of Montpellier.
  • Handle: RePEc:lam:wpaper:07-16
    as

    Download full text from publisher

    File URL: http://www.lameta.univ-montp1.fr/Documents/DR2016-08.pdf
    File Function: Revised version, 2016
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. James Andreoni, 1995. "Warm-Glow versus Cold-Prickle: The Effects of Positive and Negative Framing on Cooperation in Experiments," The Quarterly Journal of Economics, Oxford University Press, vol. 110(1), pages 1-21.
    2. Mariani, Fabio & Pérez-Barahona, Agustín & Raffin, Natacha, 2010. "Life expectancy and the environment," Journal of Economic Dynamics and Control, Elsevier, vol. 34(4), pages 798-815, April.
    3. Kuhfuss, Laure & Preget, Raphaële & Thoyer, Sophie, 2015. "Préférences individuelles et incitations collectives : quels contrats agroenvironnementaux pour la réduction des herbicides par les viticulteurs ?," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement (RAEStud), Institut National de la Recherche Agronomique (INRA), vol. 95(1).
    4. Lionel Delvaux & Bruno Henry de Frahan & Pierre Dupraz & Dominique Vermersch, 1999. "Adoption d'une MAE et consentement à recevoir des agriculteurs en région wallone," Économie rurale, Programme National Persée, vol. 249(1), pages 71-81.
    5. Dhar, Ravi, 1997. " Consumer Preference for a No-Choice Option," Journal of Consumer Research, Oxford University Press, vol. 24(2), pages 215-231, September.
    6. John, A & Pecchenino, R, 1994. "An Overlapping Generations Model of Growth and the Environment," Economic Journal, Royal Economic Society, vol. 104(427), pages 1393-1410, November.
    7. Xavier Pautrel, 2015. "Abatement Technology and the Environment–Growth Nexus with Education," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 61(3), pages 297-318, July.
    8. Ika Darnhofer & Walter Schneeberger & Bernhard Freyer, 2005. "Converting or not converting to organic farming in Austria:Farmer types and their rationale," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 22(1), pages 39-52, March.
    9. 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.
    10. repec:eee:ijrema:v:25:y:2008:i:2:p:94-103 is not listed on IDEAS
    11. John A. Fleishman, 1988. "The Effects of Decision Framing and Others' Behavior on Cooperation in a Social Dilemma," Journal of Conflict Resolution, Peace Science Society (International), vol. 32(1), pages 162-180, March.
    12. Hausman, Jerry & McFadden, Daniel, 1984. "Specification Tests for the Multinomial Logit Model," Econometrica, Econometric Society, vol. 52(5), pages 1219-1240, September.
    13. Grimaud, Andre & Tournemaine, Frederic, 2007. "Why can an environmental policy tax promote growth through the channel of education?," Ecological Economics, Elsevier, vol. 62(1), pages 27-36, April.
    14. Amos Tversky & Daniel Kahneman, 1991. "Loss Aversion in Riskless Choice: A Reference-Dependent Model," The Quarterly Journal of Economics, Oxford University Press, vol. 106(4), pages 1039-1061.
    15. Dupraz, Pierre & Latouche, Karine & Turpin, Nadine, 2007. "Programmes agri-environnementaux en présence d’effets de seuil," Cahiers d'Economie et de Sociologie Rurales (CESR), Institut National de la Recherche Agronomique (INRA), vol. 82.
    16. Coralie Calvet & Philippe Le Coënt & Claude Napoleone & Fabien Quetier, 2017. "Challenges of achieving biodiversity offset outcomes through agri-environmental schemes: evidence from an empirical study in Southern France »," Working Papers 17-05, LAMETA, Universtiy of Montpellier.
    17. Raymond Gradus & Sjak Smulders, 1993. "The trade-off between environmental care and long-term growth—Pollution in three prototype growth models," Journal of Economics, Springer, vol. 58(1), pages 25-51, February.
    18. Stine Broch & Suzanne Vedel, 2012. "Using Choice Experiments to Investigate the Policy Relevance of Heterogeneity in Farmer Agri-Environmental Contract Preferences," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 51(4), pages 561-581, April.
    19. Blomquist, Glenn C. & Whitehead, John C., 1998. "Resource quality information and validity of willingness to pay in contingent valuation," Resource and Energy Economics, Elsevier, vol. 20(2), pages 179-196, June.
    20. Sonnemans, Joep & Schram, Arthur & Offerman, Theo, 1998. "Public good provision and public bad prevention: The effect of framing," Journal of Economic Behavior & Organization, Elsevier, vol. 34(1), pages 143-161, January.
    21. Bulte, Erwin & Gerking, Shelby & List, John A. & de Zeeuw, Aart, 2005. "The effect of varying the causes of environmental problems on stated WTP values: evidence from a field study," Journal of Environmental Economics and Management, Elsevier, vol. 49(2), pages 330-342, March.
    22. David C. Ribar & Mark O. Wilhelm, 2002. "Altruistic and Joy-of-Giving Motivations in Charitable Behavior," Journal of Political Economy, University of Chicago Press, vol. 110(2), pages 425-457, April.
    23. Douadia Bougherara & Sandrine Costa & Mario Teisl, 2013. "Making or Buying Environmental Public Goods: Do Consumers Care?," Land Economics, University of Wisconsin Press, vol. 89(4), pages 767-781.
    24. Crumpler, Heidi & Grossman, Philip J., 2008. "An experimental test of warm glow giving," Journal of Public Economics, Elsevier, vol. 92(5-6), pages 1011-1021, June.
    25. Brown, Thomas C. & Nannini, Dawn & Gorter, Robert B. & Bell, Paul A. & Peterson, George L., 2002. "Judged seriousness of environmental losses: reliability and cause of loss," Ecological Economics, Elsevier, vol. 42(3), pages 479-491, September.
    26. Daniel McFadden & Kenneth Train, 2000. "Mixed MNL models for discrete response," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 15(5), pages 447-470.
    27. Gregory, Robin & Lichtenstein, Sarah & MacGregor, Donald, 1993. "The Role of Past States in Determining Reference Points for Policy Decisions," Organizational Behavior and Human Decision Processes, Elsevier, vol. 55(2), pages 195-206, July.
    28. 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.
    29. Michael Burton & Dan Rigby & Trevor Young, 1999. "Analysis of the Determinants of Adoption of Organic Horticultural Techniques in the UK," Journal of Agricultural Economics, Wiley Blackwell, vol. 50(1), pages 47-63.
    30. Prieur, Fabien & Bréchet, Thierry, 2013. "Can Education Be Good For Both Growth And The Environment?," Macroeconomic Dynamics, Cambridge University Press, vol. 17(05), pages 1135-1157, July.
    31. Christensen, Tove & Pedersen, Anders Branth & Nielsen, Helle Oersted & Mørkbak, Morten Raun & Hasler, Berit & Denver, Sigrid, 2011. "Determinants of farmers' willingness to participate in subsidy schemes for pesticide-free buffer zones--A choice experiment study," Ecological Economics, Elsevier, vol. 70(8), pages 1558-1564, June.
    32. Kahneman, Daniel & Tversky, Amos, 1979. "Prospect Theory: An Analysis of Decision under Risk," Econometrica, Econometric Society, vol. 47(2), pages 263-291, March.
    33. 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.
    34. Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74, pages 132-132.
    35. Jack Peerlings & Nico Polman, 2009. "Farm choice between agri-environmental contracts in the European Union," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 52(5), pages 593-612.
    36. H. Peter Witzke & Guido Urfei, 2001. "Willingness To Pay for Environmental Protection in Germany: Coping With the Regional Dimension," Regional Studies, Taylor & Francis Journals, vol. 35(3), pages 207-214.
    37. Mzoughi, Naoufel, 2011. "Farmers adoption of integrated crop protection and organic farming: Do moral and social concerns matter?," Ecological Economics, Elsevier, vol. 70(8), pages 1536-1545, June.
    38. Blackburn, Keith & Cipriani, Giam Pietro, 2002. "A model of longevity, fertility and growth," Journal of Economic Dynamics and Control, Elsevier, vol. 26(2), pages 187-204, February.
    39. Philippe Le Coent & Raphaële Préget & Sophie Thoyer, 2014. "Why pay for nothing? An experiment on a conditional subsidy scheme in a threshold public good game," Economics Bulletin, AccessEcon, vol. 34(3), pages 1976-1989.
    40. Roland Menges & Carsten Schroeder & Stefan Traub, 2005. "Altruism, Warm Glow and the Willingness-to-Donate for Green Electricity: An Artefactual Field Experiment," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 31(4), pages 431-458, August.
    41. Levin, Irwin P. & Schneider, Sandra L. & Gaeth, Gary J., 1998. "All Frames Are Not Created Equal: A Typology and Critical Analysis of Framing Effects," Organizational Behavior and Human Decision Processes, Elsevier, vol. 76(2), pages 149-188, November.
    42. 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.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. repec:gam:jsusta:v:11:y:2018:i:1:p:153-:d:193755 is not listed on IDEAS
    2. repec:gam:jeners:v:12:y:2019:i:6:p:981-:d:213642 is not listed on IDEAS

    More about this item

    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
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:lam:wpaper:07-16. 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: (Patricia Modat). General contact details of provider: http://edirc.repec.org/data/lamplfr.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.