Promoting conservation and public goods provision - PowerPoint PPT Presentation

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Promoting conservation and public goods provision

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Management agreements with individual farmers (UK Wildlife and Countryside Act) ... Tiered competitive tendering schemes (UK Countryside Stewardship Scheme) ... – PowerPoint PPT presentation

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Title: Promoting conservation and public goods provision


1
Promoting conservation and public goods provision
  • Lecture 29.
  • Economics of Food Markets
  • Alan Matthews

2
What we want to learn
  • The methods which can be used to value the
    positive environmental benefits of agriculture to
    help decide how much to purchase
  • The range of policy instruments available to
    encourage the provision of positive environmental
    externalities from land management

3
The environmental reference level
  • What is a benefit? What is environmental
    pollution?
  • Polluter pays concept is a social construct
  • Wetlands farmers vs environmentalists
  • Preservation of tropical rain forests
  • Access to farmland for recreation
  • Traditional farm buildings
  • Animal welfare
  • Good of Good Farming Practice defines the current
    reference level

4
Measuring environmental benefits
  • Different kinds of value
  • Use value
  • Option value
  • Existence value
  • Bequest value

5
Assessing willingness to pay
  • Travel cost method
  • Restricted to measuring use value by visitors
  • Hedonic price method
  • Restricted to measuring use value by those who
    trade in land or houses
  • Contingent valuation method
  • Only method to measure non-use values
  • Potential biases
  • Benefit transfer techniques

6
Conservation instruments
  • Education and voluntary stewardship
  • Huge amount of environmental goods provided as a
    result of sense of stewardship
  • Suggests potential for education as a
    conservation instrument
  • But also suggests that compensation payments
    could undermine this ethical approach

7
Conservation instruments
  • Financial incentives
  • Management agreements with individual farmers (UK
    Wildlife and Countryside Act)
  • Flat rate universal schemes (Irish REPS)
  • Tiered competitive tendering schemes (UK
    Countryside Stewardship Scheme)

8
Conservation instruments
  • Cross-compliance
  • Becomes possible with shift from market price
    support to direct payments
  • Increases the public return from direct payments
  • But may legitimise direct payments which
    otherwise would be hard to justify

9
Conservation instruments
  • Planning designation
  • Are farmers entitled to compensation for
    restrictions? (raises the environmental
    reference level again)
  • But what if the value of the resource depends on
    active management?
  • Public acquisition
  • National Parks
  • Conservation easements

10
General principles
  • Assign priority to agri-environment services
    which are more highly valued or which can be
    provided at lower cost
  • Targeting is desirable, but there is a trade-off
    with administration and monitoring costs
  • Importance of farmer participation and awareness
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