Is there agreement between beneficiaries on who should bear the costs of conserving farm landscapes?

Abstract

In recent years market based incentives have been regarded as a potential solution for addressing market failure related to environmental externalities. Determining the optimal payment schedule to facilitate such market mechanism typically involves a valuation exercise to capture the static benefits received by beneficiary groups from the public good. In this study we augment the valuation estimates with a notion of ‘fair share’ by assessing opinions of two beneficiary groups (tourists and Bed and Breakfast owners) regarding an acceptable division of the burden of financing the public good. We find a significant difference in views. Tourists believe that their accommodation providers should contribute almost twice the amount that they themselves are willing to pay. On the contrary, a majority of Bed and Breakfast owners surveyed were against burdening tourists with any additional payments.