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Demand and supply of agricultural ES: towards benefit-based policy

Author

Listed:
  • Annika Tienhaara
  • Emmi Haltia
  • Eija Pouta
  • Kyösti Arovuori
  • Ioanna Grammatikopoulou
  • Antti Miettinen
  • Kauko Koikkalainen
  • Heini Ahtiainen
  • Janne Artell

Abstract

In order to integrate ecosystem services (ES) in designing agri-environmental policy, we investigated both the demand for, and supply of, ES from agricultural environments in Finland. Using the discrete choice experiment method, we measured citizens' willingness to pay (WTP) for four different ES and analysed farmers' compensation request (willingness to accept [WTA]) for producing these services. Biodiversity and water quality gathered the highest WTA of farmers, but also the highest WTP of citizens. Overall, the average WTA exceeded the WTP for almost all attributes and levels, but 20–27 per cent of farmers were willing to produce the ES with the compensation lower than citizens' WTP.

Suggested Citation

  • Annika Tienhaara & Emmi Haltia & Eija Pouta & Kyösti Arovuori & Ioanna Grammatikopoulou & Antti Miettinen & Kauko Koikkalainen & Heini Ahtiainen & Janne Artell, 2020. "Demand and supply of agricultural ES: towards benefit-based policy," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 47(3), pages 1223-1249.
    • Handle: RePEc:oup:erevae:v:47:y:2020:i:3:p:1223-1249.
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    File URL: http://hdl.handle.net/10.1093/erae/jbz044
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    Citations

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    Cited by:

    1. Canessa, Carolin & Venus, Terese E. & Wiesmeier, Miriam & Mennig, Philipp & Sauer, Johannes, 2023. "Incentives, Rewards or Both in Payments for Ecosystem Services: Drawing a Link Between Farmers' Preferences and Biodiversity Levels," Ecological Economics, Elsevier, vol. 213(C).
    2. Zabala, José A. & Martínez-Paz, José M. & Alcon, Francisco, 2021. "Integrated valuation of semiarid Mediterranean agroecosystem services and disservices," Ecological Economics, Elsevier, vol. 184(C).
    3. Fockaert, Lysander & Mathijs, Erik & Vranken, Liesbet, 2021. "Local Support for Agri-Environmental Measures and the Role of Knowledge and Environmental Attitudes," 2021 Conference, August 17-31, 2021, Virtual 315153, International Association of Agricultural Economists.
    4. Ahtiainen, Heini & Pouta, Eija & Zawadzki, Wojciech & Tienhaara, Annika, 2023. "Cost vector effects in discrete choice experiments with positive status quo cost," Journal of choice modelling, Elsevier, vol. 47(C).
    5. Niskanen, Olli & Tienhaara, Annika & Haltia, Emmi & Pouta, Eija, 2021. "Farmers’ heterogeneous preferences towards results-based environmental policies," Land Use Policy, Elsevier, vol. 102(C).
    6. Dumbrell, Nikki P. & Wheeler, Sarah Ann & Zuo, Alec & Adamson, David, 2024. "Comparing Australian public and farmer views on agricultural land use and management practices for sustainability," Ecological Economics, Elsevier, vol. 219(C).
    7. Huber, Robert & Späti, Karin & Finger, Robert, 2023. "A behavioural agent-based modelling approach for the ex-ante assessment of policies supporting precision agriculture," Ecological Economics, Elsevier, vol. 212(C).
    8. Yaofeng Yang & Yajuan Chen & Zhenrong Yu & Pengyao Li & Xuedong Li, 2020. "How Does Improve Farmers’ Attitudes toward Ecosystem Services to Support Sustainable Development of Agriculture? Based on Environmental Kuznets Curve Theory," Sustainability, MDPI, vol. 12(20), pages 1-16, October.
    9. Rita Vilkė & Živilė Gedminaitė‐Raudonė & Tomas Baležentis & Dalia Štreimikienė, 2021. "Farmers' awareness of eco‐efficiency and cleaner production as environmental responsibility: Lithuanian case," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(1), pages 288-298, January.

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