Farm-household investment behaviour and the CAP decoupling: Methodological issues in assessing policy impacts

Viaggi, Davide; Raggi, Meri; Paloma, Sergio Gómez y

doi:10.1016/j.jpolmod.2010.10.004

Cited by 46 publications

(26 citation statements)

References 115 publications

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“…Stated choices regarding changes in the policy identified via survey reveal actual (or true) behavior. This stated behavior can help to understand the differentiated effects of the policy [42][43][44]. This method inquires respondent's WTP for the change in environmental quality (e.g., hypothetical improvements in water quality) through the survey instrument in assessing the impact of the policy change on individual welfare [26,45].…”

Section: Methodsmentioning

confidence: 99%

Willingness to Pay for a Highland Agricultural Restriction Policy to Improve Water Quality in South Korea: Correcting Anomalous Preference in Contingent Valuation Method

Choi

Kim

Shin

et al. 2016

Water

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This study examines the willingness to pay (WTP) for the highland agriculture restriction policy which aims to stabilize the water quality in the Han River basin, South Korea. To estimate the WTP, we use a double-bounded contingent valuation method and a random-effects interval-data regression. We extend contingent valuation studies by dealing with the potential preference anomalies (shift, anchoring, and inconsistent response effects). The result indicates that after the preference anomalies are corrected, the statistical precision of parameter estimates is improved. After correcting the potential preference anomalies, estimated welfare gains are on average South Korean currency (KRW) 2,861 per month per household. Based on the WTP estimate, the total benefits from the land use restriction policy are around KRW 297.73 billion and the total costs are around KRW 129.44 billion. The net benefit is, thus, around KRW 168.29 billion. This study suggests several practical solutions that would be useful for the water management. First, a priority should be given to the valid compensation for the highland farmers' expected income loss. Second, it is necessary to increase in the unit cost of the highland purchase. Third, wasted or inefficiently used costs (e.g., overinvestment in waste treatment facilities, and temporary upstream community support) should be transferred to the program associated with high mountainous agriculture field purchase. Results of our analysis support South Korean legislators and land use policy makers with useful information for the approval and operationalization of the policy.

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Section: Methodsmentioning

confidence: 99%

Willingness to Pay for a Highland Agricultural Restriction Policy to Improve Water Quality in South Korea: Correcting Anomalous Preference in Contingent Valuation Method

Choi

Kim

Shin

et al. 2016

Water

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show abstract

“…The opposite behaviour, namely farmers who intend to exit farming in the 'CAP continuation scenario' but remain in the 'No CAP scenario', as well as farmers who do not know in the 'CAP continuation scenario' and remain in the 'No CAP scenario', constitute the group of 'Other Although this is a strong assumption, it was chosen for two reasons: 1) it ensured that all respondents were faced with the same economic scenario; and 2) it enabled the assessment of the impact of the CAP removal only, while such an impact could have been blurred by price effects if an evolving economic scenario had been chosen. As stressed by Viaggi et al (2011), it is crucial to disentangle the effects of a specific policy from the other aspects of the changing socio-economic context. changed intentions'.…”

Section: Cap Scenarios and Respondents' Intentionsmentioning

confidence: 99%

“…Moreover, it can be argued that intentions surveys may reveal specific and precise strategies or effects that would not be shown by modelling exercises using aggregated data or using the same behavioural assumptions for all farmers (Douarin et al, 2007). Viaggi et al (2011) also underlined the fact that, although models might enable the policy effects to be separated from other economic drivers, they are 'a simplified representation of reality' and do not allow agents' personal motivations to be accounted for.…”

Section: Introductionmentioning

confidence: 99%

What would farmers' strategies be in a no-CAP situation? An illustration from two regions in France

Latruffe

Dupuy

Desjeux

2013

Journal of Rural Studies

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“…Cardamone, 2011;Kempen et al, 2011;Sieber and Dominguez, 2011;Soregaroli et al 2011;Viaggi et al, 2011 as recent studies).…”

Section: Introductionmentioning

confidence: 87%

The entry price threshold in EU agriculture: Deterrent or barrier?

Santeramo

Cioffi

2012

Journal of Policy Modeling

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Farm-household investment behaviour and the CAP decoupling: Methodological issues in assessing policy impacts

Cited by 46 publications

References 115 publications

Willingness to Pay for a Highland Agricultural Restriction Policy to Improve Water Quality in South Korea: Correcting Anomalous Preference in Contingent Valuation Method

Willingness to Pay for a Highland Agricultural Restriction Policy to Improve Water Quality in South Korea: Correcting Anomalous Preference in Contingent Valuation Method

What would farmers' strategies be in a no-CAP situation? An illustration from two regions in France

The entry price threshold in EU agriculture: Deterrent or barrier?

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