Assessing Consumer Preferences and Willingness to Pay for Agricultural Landscape Attributes in Lithuania

Abstract

Agricultural activities play an important role in shaping landscape, in particular, in Lithuania, where agricultural land accounts for more than half of the surface land. These landscape services are used by people as public goods, contributing to societal welfare. The aim of this study is to assess the value of agricultural landscape, identifying consumer preferences and willingness to pay for agricultural landscape attributes using the choice experiment (CE) method. The article analyses the agricultural landscape services and attributes the condition of which depends directly on the farming systems and practices applied. Four attributes of agricultural landscape were selected for the research: (i) scenic views; (ii) variety of flora and fauna species, (iii) recreational infrastructure and services, and (iv) objects of cultural heritage. The latent class approach (LCA) was used for analysis of heterogenous preferences among the Lithuanian residents. The findings provided quantitative information related to the demand for agricultural landscape goods, identifying a particular interest for the objects of cultural heritage, in relation to which the willingness to pay is particularly high. It is necessary to understand and analyse the preferences for agricultural landscape services with the purpose of improvement of the agricultural policy measures in order to change the farmers’ performance towards sustainability. The case study offers new empirical arguments for agri-environmental policy development.