Abstract
Over the last few decades increasing concern has been voiced regarding the detrimental effect which many modern farming practices are thought to have on the countryside. The Environmentally Sensitive Areas (ESA) Scheme is one response to this concern and seeks to support those agricultural practices which have contributed to the distinctive agricultural landscape, which for many people typifies the British countryside. This paper uses the contingent valuation method to estimate the benefits which the general public receives from the ESA scheme in the South Downs and sets them against the estimated net exchequer costs of the scheme. The study illustrates the importance of including passive use values in benefit‐cost analysis, if environmental protection is to be provided in certain marginal areas.
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