Abstract
Recently, in Korea, there have been some disturbing events forcing a trade-off between the expansion of agrophotovoltaic (APV) power plants and the agricultural policy to enhance the public benefit function of agriculture. Under this context, this study attempts to examine the public perception of agricultural landscape and the APV power plants and to analyze the impact of APV power plants on the amenity value of the agricultural landscape. The results of the analysis based on the choice experiment method shows that the marginal willingness-to-pay for a rural tourism accommodation with a ‘agricultural landscape view’ is USD 64.37 higher compared to ‘agrophotovoltaics panel view.’ This implies that the value of the agricultural landscape decreases when solar panels are installed on farmland, signifying the detrimental impact of the APV power plants on the multi-functionality of agriculture. If the installation of APVs is expanded to farmlands nationwide, the amenity value of agricultural landscape is estimated to decrease by USD 1.70 billion or 55.0% of the total estimated amenity value in Korea.
Highlights
For every choice made, there is a sacrifice or opportunity cost that follows
The purpose of this study is to analyze the impact of the expansion of the APV power plants on the agricultural landscape
We analyzed the effect of APV power plants on agricultural landscape value based on the choice experiment method
Summary
In the process of formulating a government policy, it is often the case when one of the two policy goals is delayed or sacrificed in pursuit of accomplishing the other one in favor. In economics, such a phenomenon is defined as a ‘trade-off’ between the policies [1]. When a trade-off between two policy goals is expected, a thorough analysis of pros and cons of detailed alternatives is required to make an agreeable policy decision. If the government is unaware of and does not consider such trade-offs between the policy goals before making a decision, social dilemma and social cost may incur from the enforced policy or measures. The problem in question is an inevitable trade-off relationship between the expansion of agrophotovoltaic (APV) power plants implemented as part of the renewable energy expansion policy and the agricultural policy to expand the public benefit function of agriculture
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