Building an empirically-based framework to value multiple public goods of agriculture at broad supranational scales

Santos, José Lima; Madureira, Lívia; Ferreira, Ana; Espinosa-Goded, María; Paloma, Sergio Gómez y

doi:10.1016/j.landusepol.2015.12.001

Cited by 19 publications

(19 citation statements)

References 9 publications

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“…In this case, it means the danger of transforming public goods into club goods (Czyżewski and Brelik, 2013;Brezinova et al, 2016;Zuchowski and Brelik, 2017). There is no doubt, however, that rural areas are the place where many environmental and cultural public goods are offered included under the landscape as "the agro-ecological infrastructure delivering things people directly value, such as food, fibre and energy, and multiple cultural and environmental PGs" (Santos et al, 2016). The results of the cited Delbecq et al (2014) also show that farmland values are only partially explained by agricultural returns.…”

Section: Public Goods In Rural Areas: Literature Reviewmentioning

confidence: 99%

“…However, the study of Santos et al (2016) represents the most recent and comprehensive attempt to build an empirically-based framework to value multiple public goods of agriculture and rural areas. Santos uses context-rich valuation scenarios at broad supranational scale, employing the typology of Macro-Regional Agri-Environmental Problems (MRAEP) associated with 13 clusters (macroregions MR) of European agrarian structures.…”

Section: Public Goods In Rural Areas: Literature Reviewmentioning

confidence: 99%

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Providing Environmental Public Goods under the Common Agricultural Policy as a Cure for Market Failure

Czyżewski¹,

Brelik²

2019

ERSJ

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Purpose: In the reality of the marketplace, a situation often arises where an economic surplus (rent) achieved by agricultural producers is partly taken over by related nonagricultural sectors. In this sense the category of economic rent embraces market failures related to such factors as price flexibility, and thus represents an effect of the misallocation of resources in the agricultural sector. The question therefore arises of whether there exists a developmental model of agriculture in which such market failures would be reduced. Apparently the only coherent response to this need is action taken under the paradigm of sustainable agriculture. This type of model for the sector's functioning is supported by the objectives of the European Union's Common Agricultural Policy (CAP), including through support for the supply of public goods in rural areas. Design / Methodology / Approach: To verify the hypothesis, a panel regression analysis was performed on three sets: the EU-15 countries and the EU-12 countries. The analysis covered two hitherto accomplished CAP programming periods: 2004-2006 and 2007-2013. Findings: Increase in the level of payments for public goods, as a percentage of total subsidies to agriculture, leads on average to a reduction in the drainage of economic rents through prices. It was also found that the financing of public goods under the CAP is more effective in reducing market failures in the EU-15 countries than in the EU-12. Practical Implications: This article addresses the question of whether CAP payments for public goods are a desirable systemic solution serving to reduce market failures. It is hypothesised that the financing of activity relating to the supply of public goods mitigates the "market treadmill", since it reduces the unexpected outflows of economic surplus away from farms, caused by agricultural prices.

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Section: Public Goods In Rural Areas: Literature Reviewmentioning

confidence: 99%

Section: Public Goods In Rural Areas: Literature Reviewmentioning

confidence: 99%

Providing Environmental Public Goods under the Common Agricultural Policy as a Cure for Market Failure

Czyżewski¹,

Brelik²

2019

ERSJ

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“…Outwardly, societal concern with stagnation of rural economies and the role of support policies in social innovation has not only been studied by academics (Dwyer, 2016), but has also been shown as a factor in the unfolding of Brexit (Matthews, 2016a). LFA measures are important for maintaining public goods as cultural assets in relation to agricultural landscapes with their socioeconomic aspects (Vrolijk et al, 2009), next to biophysical factors (Cooper et al, 2006 andMadureira et al, 2013;Santos et al, 2016;Wrbka, 2004). Evidence exists that both traditionally oriented and innovative farm businesses in LFAs have potential to ensure land management that is beneficial to biodiversity in comparison to farmers who are highly production-oriented but support the lowest nature values on their land (Anon, 2014;Barnes et al, 2011;Cardwell, 2004;Cudlínová et al, 2012;Schmitzberger et al, 2005).…”

Section: Introductionmentioning

confidence: 99%

Subsidies to Less Favoured Areas in the Czech Republic: Why Do They Matter?

Poláková¹

2019

Prague Economic Papers

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Subsidy to less favoured area (LFA) farms is central to rural development policy in the European Union. Here, three categories of LFA support are assessed: farm competitiveness measures, LFA measures, and agri-environment measures. These categories of measures are complementary to safeguarding land management and delivering ecosystem benefits. Based on historical data for the Czech Republic, this paper endeavours to illustrate potential methods for assessing the LFA subsidies. In sum, rigorous methods to evaluate LFA evidence are still at their very starting point, even as they are necessary in order to ascertain the Community's capability, alongside the local, regional, or national institutional capability. A positive trend has been identified with regard to stabilizing the available rural development budget for the policy priority "Restoring, preserving and enhancing agroecosystems".

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“…In this context, Jones et al (2016) affirm that in recognition of the cultural services that agricultural landscapes provide, these landscapes are now being defined both as physical structures managed for the purposes of agriculture and forestry and as cultural entities characterised by systems of land use and cultural practices. Landscape plays an important role in cultural, environmental and social spheres, and is a favorable resource to economy, because protection, management and planning of the cultural landscape may contribute to job creation in rural areas (Santos et al, 2016). Therefore, the positive role of agriculture, good farming practices have the potential to significantly increase the value of landscape, while the negative role may lead to impoverishment of landscape.…”

Section: Introductionmentioning

confidence: 99%

“…Agri-environmental public goods and services as aesthetic value of agricultural landscape or preservation of biodiversity are created as by-products during production of market output. Farmers' reaction to agri-food price changes and changes in agricultural policy could influence the supply of these public goods and services (Santos et al, 2016).…”

Section: Introductionmentioning

confidence: 99%

Consumers’ willingness to pay for agricultural landscape improvements in Lithuania: estimation framework

Novikova¹,

Vaznonis²

2017

Research for Rural Development

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Agriculture not only supplies food and fibre to the society, but also provides other services, which are not revealed in the market prices. The role of agricultural activities is essential in forming and improving the landscape, in particular, for Lithuanian case study. Therefore, the paper focuses on development of the framework for estimation of consumers' willingness to pay for agricultural landscape improvements. The objectives of this paper are to present construction of the estimation framework for eliciting willingness to pay (WTP) for nonmarket agricultural landscape goods through choice experiments (CE) in Lithuania; then, to show the results of framework pre-test, and identify applicability of the framework designed. CE is a survey-based method implying creation of repetitive choice situations about alternatives of agri-environmental schemes for revealing how inhabitants of Lithuania value public goods from agricultural landscape (scenic views, variety of flora and fauna species, recreational infrastructure and services, the objects of cultural heritage), enabling to estimate Lithuanian residents' WTP and the demand for improvements of agricultural landscape. The results of the pilot survey have shown that the questionnaire was comprehensible and interesting to the respondents, revealing that the valuation of agricultural landscape is in demand by the society. The results of modelling, applying conditional logit, have shown a good model fit, allowing the usage of the estimation framework for the main survey and an estimation of consumers' willingness to pay for public goods/improvements from agricultural landscape.

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Building an empirically-based framework to value multiple public goods of agriculture at broad supranational scales

Cited by 19 publications

References 9 publications

Providing Environmental Public Goods under the Common Agricultural Policy as a Cure for Market Failure

Providing Environmental Public Goods under the Common Agricultural Policy as a Cure for Market Failure

Subsidies to Less Favoured Areas in the Czech Republic: Why Do They Matter?

Consumers’ willingness to pay for agricultural landscape improvements in Lithuania: estimation framework

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