How to increase the effectiveness of AES by knowing farmer perceptions -a choice experiment on pesticide free buffer zones

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Danish farmers have been far less interested in agri-environmental subsidy schemes than anticipated. We

use choice experiments to estimate 486 Danish farmers' preferences for a number of policy relevant schemecharacteristics.

Subsidy schemes for pesticide free buffer zones along hedgerows are used as a case. A random parameter logit framework is applied. By quantifying farmers' preferences, we are able to assess the relative importance of individual scheme-characteristics. Our results indicate that overall contract terms (length and flexibility) are more important to farmers than practical management restrictions (choice of buffer zone width, using fertilizer, and reduced administrative burden). As a novelty, the administrative burden is captured by estimating how farmers value costless assistance to the actual application. For example, our model estimates indicate that an average farmer is willing to give up 120 Euros per hectare per year for changing a 5 year contract to a one year contract. However, whether a shorter contract is preferable from a societal point of view still depends on the environmental costs of reducing the contract length.

Original languageEnglish
Publication date2010
Number of pages11
Publication statusPublished - 2010
EventMiljøøkonomisk Konference 2010 - Skodsborg, Denmark
Duration: 23 Aug 201024 Aug 2010


ConferenceMiljøøkonomisk Konference 2010
SponsorDe Økonomiske Råd

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