Abstract
The aim of this paper is to elicit the marginal willingness to pay (MWTP) for the improved provision of public goods (PGs) by agriculture in a region of intensive agricultural production, embodying many of the environmental problems related to agriculture within and outside the European Union (EU). Our analysis was based on a participatory approach, combining the involvement of local stakeholders and a discrete choice experiment (DCE) in the Marchfeld region in Austria. We estimated a random parameters logit model (RPL), including interactions with socio-demographic factors, to disentangle preference heterogeneity and find a positive MWTP of the local population for all three PGs analyzed: (i) groundwater quality; (ii) landscape quality; and (iii) soil functionality in connection with climate stability. Furthermore, MWTP varies considerably with respect to age, farmers/non-farmers and locals/incomers. Further research could combine the results of this demand-side valuation with those of a supply-side valuation, where the opportunity costs of different management options for farmers are estimated. Based on such a cost–benefit analysis and further participation of local stakeholders, new governance mechanisms for the smart and sustainable provision of PGs by agriculture could be developed for the Marchfeld region and for comparable European regions.
Highlights
Agriculture faces increasing and opposing social and environmental challenges: due to population growth and changes in global dietary patterns, the global demand for agricultural products remains high and is set to increase further [1]
The aim of this study was to elicit the marginal willingness to pay (MWTP) of local residents for the improved provision of public goods (PGs) by agriculture in a typical region of intensive agricultural production, which embodies many of the environmental problems related to agriculture found in comparable regions within and outside the European Union (EU)
In the context of an upcoming reform of the Common Agricultural Policy (CAP) of the European Union (EU), which will most likely link payments to farmers more closely to a measurable provision of public goods, the aim of this paper was to elicit the marginal willingness to pay (MWTP) of local residents for the improved provision of public goods (PGs) by agriculture in a typical region of intensive agricultural production, which embodies many of the environmental problems related to agriculture within and outside the EU
Summary
Agriculture faces increasing and opposing social and environmental challenges: due to population growth and changes in global dietary patterns, the global demand for (cheap) agricultural products remains high and is set to increase further [1]. In many places, this demand leads to the intensification and spatial expansion of agricultural production, resulting in negative externalities for the environment [2] and the global climate [3]. The environmental and social trade-offs of agricultural production are widely acknowledged and the related public and scientific debate is constantly evolving, leading to a growing recognition of sustainable production methods [6]
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