IDEAS home Printed from https://ideas.repec.org/p/ags/aesc14/170560.html
   My bibliography  Save this paper

Assessing Farmers' Willingness to Accept "Greening": Insights from a Discrete Choice Experiment in Gremany

Author

Listed:
  • Latacz-Lohmann, Uwe
  • Schulz, Norbert
  • Breustedt, Gunnar

Abstract

This paper explores farmers’ prospective responses to the “greening” of the Common Agricultural Policy. The analysis is based on discrete choice experiments with 128 German farmers. Participants were asked to choose between a “greening” option with a given set of management prescriptions and an “opt-out” alternative with a stipulated cut of the single direct payment. A binary logit model is used to identify the variables affecting the likelihood of “greening” being chosen. In addition, latent class estimations are carried out to group respondents into latent classes of “compliers” and “non-compliers”. We find that farmers” choices are driven by “greening” policy attributes, personal and farm characteristics, and interactions between these two groups of variables. Farmers perceive “greening” as a costly constraint, but not all farmers are equally affected and not all “greening” provisions are regarded as equally demanding. Specialised arable farms on highly productive land and intensive dairy farms are most likely to opt out of “greening” and voluntarily forgo part of their single payment entitlements. The paper concludes with a set of recommendations for improving the design of a second-best policy.

Suggested Citation

  • Latacz-Lohmann, Uwe & Schulz, Norbert & Breustedt, Gunnar, 2014. "Assessing Farmers' Willingness to Accept "Greening": Insights from a Discrete Choice Experiment in Gremany," 88th Annual Conference, April 9-11, 2014, AgroParisTech, Paris, France 170560, Agricultural Economics Society.
  • Handle: RePEc:ags:aesc14:170560
    DOI: 10.22004/ag.econ.170560
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/170560/files/Uwe_Latacz-Lohmann_AES%202014%20Latacz-Lohmann%20et%20al.pdf
    Download Restriction: no

    File URL: https://libkey.io/10.22004/ag.econ.170560?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Louviere,Jordan J. & Hensher,David A. & Swait,Joffre D. With contributions by-Name:Adamowicz,Wiktor, 2000. "Stated Choice Methods," Cambridge Books, Cambridge University Press, number 9780521788304, November.
    2. Wiktor Adamowicz & Peter Boxall & Michael Williams & Jordan Louviere, 1998. "Stated Preference Approaches for Measuring Passive Use Values: Choice Experiments and Contingent Valuation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(1), pages 64-75.
    3. Matthews, Alan, 2013. "Greening agricultural payments in the EU’s Common Agricultural Policy," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 2(01), pages 1-27, April.
    4. Berning, Joshua P. & Chouinard, Hayley H. & Manning, Kenneth C. & McCluskey, Jill J. & Sprott, David E., 2010. "Identifying consumer preferences for nutrition information on grocery store shelf labels," Food Policy, Elsevier, vol. 35(5), pages 429-436, October.
    5. Daniele Pacifico & Hong il Yoo, 2012. "Iclogit: a Stata module for estimating a mixed logit model with discrete mixing distribution via the Expectation-Maximization algorithm," Working Papers 6, Department of the Treasury, Ministry of the Economy and of Finance.
    6. 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.
    7. 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, June.
    8. Hart, Kaley & Little, Jonathan, 2012. "Environmental approach of the CAP legislative proposal," Politica Agricola Internazionale - International Agricultural Policy, Edizioni L'Informatore Agrario, vol. 2012(01), pages 1-11, August.
    9. Breustedt, Gunnar & Muller-Scheessel, Jorg & Latacz-Lohmann, Uwe, 2008. "Forecasting the Adoption of GM Oilseed Rape: Evidence from a Discrete Choice Experiment," 82nd Annual Conference, March 31 - April 2, 2008, Royal Agricultural College, Cirencester, UK 36771, Agricultural Economics Society.
    10. Gunnar Breustedt & Jörg Müller‐Scheeßel & Uwe Latacz‐Lohmann, 2008. "Forecasting the Adoption of GM Oilseed Rape: Evidence from a Discrete Choice Experiment in Germany," Journal of Agricultural Economics, Wiley Blackwell, vol. 59(2), pages 237-256, June.
    11. Peter Boxall & Wiktor Adamowicz, 2002. "Understanding Heterogeneous Preferences in Random Utility Models: A Latent Class Approach," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 23(4), pages 421-446, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Na-na Wang & Liang-guo Luo & Ya-ru Pan & Xue-mei Ni, 2019. "Use of discrete choice experiments to facilitate design of effective environmentally friendly agricultural policies," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 21(4), pages 1543-1559, August.
    2. Feil, J.-H. & Anastassiadis, F. & Mußhoff, O. & Schilling, P., 2015. "Analysing Farmers’ Use of Price Hedging Instruments: An Experimental Approach," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 50, March.
    3. Dan Pan, 2016. "The Design of Policy Instruments towards Sustainable Livestock Production in China: An Application of the Choice Experiment Method," Sustainability, MDPI, vol. 8(7), pages 1-18, July.
    4. 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.
    5. Schreiner, Julia A., 2014. "Farmers’ Valuation of Incentives to Produce GMO-free Milk: A Discrete Choice Experiment," 2014 International European Forum, February 17-21, 2014, Innsbruck-Igls, Austria 199373, International European Forum on System Dynamics and Innovation in Food Networks.
    6. Marianne Lefebvre & Pauline Laille & Masha Maslianskaia-Pautrel, 2020. "Individual preferences regarding pesticide-free management of green-spaces: a discret choice experiment with French citizens," Working Papers 2020.02, FAERE - French Association of Environmental and Resource Economists.
    7. Pauline Laille & Marianne Lefebvre & Masha Maslianskaia-Pautrel, 2020. "Individual preferences regarding pesticide-free management of green-spaces: a discret choice experiment with French citizens," Working Papers hal-02867639, HAL.
    8. Bjørnåvold, Amalie & David, Maia & Bohan, David A. & Gibert, Caroline & Rousselle, Jean-Marc & Van Passel, Steven, 2022. "Why does France not meet its pesticide reduction targets? Farmers' socio-economic trade-offs when adopting agro-ecological practices," Ecological Economics, Elsevier, vol. 198(C).
    9. Breustedt, Gunnar & Schulz, Norbert & Latacz-Lohmann, Uwe, 2013. "Ermittlung der Teilnahmebereitschaft an Vertragsnaturschutzprogrammen und der dafür notwendigen Ausgleichszahlungen mit Hilfe eines Discrete-Choice-Experimentes," Journal of International Agricultural Trade and Development, Journal of International Agricultural Trade and Development, vol. 62(4).
    10. Iván Pérez-Rubio & Daniel Flores & Christian Vargas & Francisco Jiménez & Iker Etxano, 2021. "To What Extent Are Cattle Ranching Landholders Willing to Restore Ecosystem Services? Constructing a Micro-Scale PES Scheme in Southern Costa Rica," Land, MDPI, vol. 10(7), pages 1-24, July.
    11. Otieno, David & Ogutu, Sylvester, 2015. "Consumer willingness to pay for animal welfare attributes in a developing country context: The case of chicken in Nairobi, Kenya," 2015 Conference, August 9-14, 2015, Milan, Italy 212602, International Association of Agricultural Economists.
    12. Oyakhilomen Oyinbo & Jordan Chamberlin & Miet Maertens, 2020. "Design of Digital Agricultural Extension Tools: Perspectives from Extension Agents in Nigeria," Journal of Agricultural Economics, Wiley Blackwell, vol. 71(3), pages 798-815, September.
    13. Burton, Michael P. & Rigby, Dan, 2006. "Non-Participation in Choice Models: Hurdle and Latent Class Models," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25312, International Association of Agricultural Economists.
    14. Lapierre, Margaux & Le Velly, Gwenolé & Bougherara, Douadia & Préget, Raphaële & Sauquet, Alexandre, 2023. "Designing agri-environmental schemes to cope with uncertainty," Ecological Economics, Elsevier, vol. 203(C).
    15. Novikova, Anastasija & Rocchi, Lucia & Vitunskienė, Vlada, 2017. "Assessing the benefit of the agroecosystem services: Lithuanian preferences using a latent class approach," Land Use Policy, Elsevier, vol. 68(C), pages 277-286.
    16. Caroline Roussy & Aude Ridier & Karim Chaïb, 2014. "Adoption d’innovations par les agriculteurs : rôle des perceptions et des préférences," Post-Print hal-01123427, HAL.
    17. Zandersen, Marianne & Oddershede, Jakob Stoktoft & Pedersen, Anders Branth & Nielsen, Helle Ørsted & Termansen, Mette, 2021. "Nature Based Solutions for Climate Adaptation - Paying Farmers for Flood Control," Ecological Economics, Elsevier, vol. 179(C).
    18. Anastasio J. Villanueva & Klaus Glenk & Macario Rodríguez-Entrena, 2017. "Protest Responses and Willingness to Accept: Ecosystem Services Providers’ Preferences towards Incentive-Based Schemes," Journal of Agricultural Economics, Wiley Blackwell, vol. 68(3), pages 801-821, September.
    19. Chèze, Benoît & David, Maia & Martinet, Vincent, 2020. "Understanding farmers' reluctance to reduce pesticide use: A choice experiment," Ecological Economics, Elsevier, vol. 167(C).
    20. Greiner, Romy, 2014. "Willingness of north Australian pastoralists and graziers to participate in contractual biodiversity conservation," 2014 Conference (58th), February 4-7, 2014, Port Macquarie, Australia 165839, Australian Agricultural and Resource Economics Society.

    More about this item

    Keywords

    Agricultural and Food Policy; Farm Management;

    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:ags:aesc14:170560. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aesukea.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.