Valuation of the supply of public goods by agricultural systems: the case of Andalusian mountain olive groves

Anastasio J. Villanueva, José A. Gómez-Limón, Macario Rodríguez-Entrena

Abstract

We carried out an economic valuation of public goods (PGs) provided by Andalusian mountainous olive groves using choice experiments. The results show varying farmers’ behaviour depending on the level of stringency of the requirements included in agri-environmental schemes, with willingness to accept (WTA) lower than € 80/ha for less stringent scenarios (such as those associated with integrate production) and WTA higher than € 300/ha for the most stringent scenario (designed to maximise the provision of environmental PGs). The study also indicates that the inclusion of a results-based bonus has a low relevance

Keywords

Agri-environmental schemes; choice experiments; mountain olive groves; public goods; results-based payments

Subject classification

Q18; Q11; Q25

Full Text:

PDF

References

Barranco, D., Fernández-Escobar, R. & Rallo, L. (2008). El cultivo del olivo. Madrid: Mundi-Prensa y Junta de Andalucía.

Barreiro-Hurlé, J. (2016). “Evaluación de alternativas para el diseño de medidas agroambientales: el potencial de implementar contratos vía subastas y pago por servicios ambientales”. Revista Española de Estudios Agrosociales y Pesqueros, 245, 15-46.

Broch, S.W. & Vedel, S.E. (2012). “Using choice experiments to investigate the policy relevance of heterogeneity in farmer agri-environmental contract preferences”. Environmental and Resource Economics, 51(4), 561-581. http://doi.org/10.1007/s10640-011-9512-8.

Burton, R.J.F. & Schwarz, G. (2013). “Result-oriented agri-environmental schemes in Europe and their potential for promoting behavioural change”. Land Use Policy, 30(1), 628-641. https://doi.org/10.1016/j.landusepol.2012.05.002.

Consejería de Agricultura Pesca y Desarrollo Rural (CAPDR). (2015). Decreto 103/2015, de 10 de marzo, por el que se aprueba el Plan Director del Olivar. Sevilla: Consejería de Agricultura Pesca y Desarrollo Rural, Junta de Andalucía.

Carmona-Torres, C., Parra-López, C., Hinojosa-Rodríguez, A. & Sayadi, S. (2014). “Farm-level multifunctionality associated with farming techniques in olive growing: An integrated modeling approach”. Agricultural Systems, 127, 97-114. https://doi.org/10.1016/j.agsy.2014.02.001.

Consejería de Agricultura y Pesca (CAyP). (2008). El sector del aceite de oliva y de la aceituna de mesa en Andalucía. Sevilla: Consejería de Agricultura y Pesca, Junta de Andalucía.

Colombo, S., Calatrava-Requena, J. & Hanley, N. (2006). “Analysing the social benefits of soil conservation measures using stated preference methods”. Ecological Economics, 58(4), 850-861. https://doi.org/10.1016/j.ecolecon.2005.09.010.

Colombo, S. & Camacho-Castillo, J. (2014). “Caracterización del olivar de montaña andaluz para la implementación de los Contratos Territoriales de Zona Rural”. ITEA. Información Técnica Económica Agraria, 110(3), 282-299. https://doi.org/10.12706/itea.2014.018.

Cooper, T., Hart, K. & Baldock, D. (2009). Provision of Public Goods through Agriculture in the European Union. London: Institute for European Environmental Policy.

Christensen, T., Pedersen, A.B., Nielsen, H.O., Mørkbak, M.R., Hasler, B. & Denver, S. (2011). “Determinants of farmers’ willingness to participate in subsidy schemes for pesticide-free buffer zones. A choice experiment study”. Ecological Economics, 70(8), 1558-1564. https://doi.org/10.1016/j.ecolecon.2011.03.021.

de Sainte Marie, C. (2014). “Rethinking agri-environmental schemes. A resultoriented approach to the management of species-rich grasslands in France”. Journal of Environmental Planning and Management, 57(5), 704-719. http://dx.doi.org/10.1080/09640568.2013.763772.

Duarte, F., Jones, N. & Fleskens, L. (2008). “Traditional olive orchards on sloping land: Sustainability or abandonment?” Journal of Environmental Management, 89(2), 86-98. https://doi.org/10.1016/j.jenvman.2007.05.024.

European Commission (EC). (2010). The CAP towards 2020: Meeting the Food, Natural Resources and Territorial Challenges of the Future. Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions. Brussels: European Commission.

European Commission (EC). (2013). Special Eurobarometer 410. Europeans, Agriculture and the Common Agricultural Policy (CAP). Brussels: European Commission.

European Court of Auditors (ECA). (2011). Is Agri-Environment Support Well Designed and Managed? Special Report No 7/2011. Luxembourg: Publications Office of the European Union.

European Parliament (EP) (Ed.). (2016). Research for AGRI Committee - CAP Reform Post-2020 - Challenges in Agriculture. European Parliament. Directorate-General for Internal Policies. Brussels: Policy Department. Structural and Cohesion Policies.

Erjavec, K. & Erjavec, E. (2015). “‘Greening the CAP’. Just a fashionable justification? A discourse analysis of the 2014-2020 CAP reform documents”. Food Policy, 51, 53-62. https://doi.org/10.1016/j.foodpol.2014.12.006.

Espinosa-Goded, M. & Barreiro-Hurlé, J. (2010). “Las preferencias discontinuas en los experimentos de elección: Impacto en el cálculo de la prima de los programas agroambientales”. Economía Agraria y Recursos Naturales, 10(1), 155-176. https://doi.org/10.7201/earn.2010.01.09.

Espinosa-Goded, M., Barreiro-Hurlé, J. & Ruto, E. (2010). “What do farmers want from agri-environmental scheme design? A choice experiment approach”. Journal of Agricultural Economics, 61(2), 259-273. https://doi.org/10.1111/j.1477-9552.2010.00244.x.

Gómez-Limón, J.A. & Arriaza, M. (2011). Evaluación de la sostenibilidad de las explotaciones de olivar en Andalucía. Málaga: Analistas Económicos de Andalucía.

Gómez Calero, J.A. (2009). Sostenibilidad de la producción de olivar en Andalucía. Sevilla: Consejería de Agricultura y Pesca, Junta de Andalucía.

Gómez Calero, J.A. & Giráldez, J.V. (2009). “Erosión y degradación de suelos”. En Gómez Calero, J.A. (Ed.). Sostenibilidad de la producción de olivar en Andalucía (pp. 45-86). Sevilla: Consejería de Agricultura y Pesca, Junta de Andalucía.

Hanemann, W.M. (1984). “Welfare evaluations in contingent valuation experiments with discrete responses”. American Journal of Agricultural Economics, 66(3), 332-341. https://doi.org/10.2307/1240800.

Hart, K., Baldock, D., Weingarten, P., Osterburg, B., Povellato, A., et al. (2011). What Tools for the European Agricultural Policy to Encourage the Provision of Public Goods? Brussels: European Parliament.

Hart, K., Buckwell, A. & Baldock, D. (2016). Learning the Lessons of the Greening of the CAP. London: Institute for European Environmental Policy.

Hensher, D., Hanley, A., Rose, J.M. & Greene, W.H. (2005). Applied Choice Analysis: A Primer. Cambridge: Cambridge University Press.

Junta de Andalucía. (2015). Plan de Desarrollo Rural de Andalucía 2014-2020. Sevilla: Junta de Andalucía.

Kallas, Z., Gómez-Limón, J.A., Arriaza, M. & Nekhay, O. (2006). “Análisis de la demanda de bienes y servicios no comerciales procedentes de la actividad agraria: El caso del olivar de montaña andaluz”. Economía Agraria y Recursos Naturales, 6(11), 49-79.

Krinsky, I. & Robb, A.L. (1986). “On approximating the statistical properties of elasticities”. The Review of Economics and Statistics, 68(4), 715-719. https://doi.org/10.2307/1924536.

Lancaster, K.J. (1966). “A new approach to consumer theory”. The Journal of Political Economy, 74(2), 132-157. https://doi.org/10.1007/978-3-642-51565-1_34.

Latacz-Lohmann, U. (2001). A Policy Decision-Making Framework for Devising Optimal Implementation Strategies for Good Agricultural and Environmental Policy Practices. Paris: Organisation for Economic Co-operation and Development (OECD).

McFadden, D.L. (1974). “Conditional logit analysis of qualitative choice behaviour”. In Zarembka, P. (Ed.). Frontiers in Econometrics (pp. 105-142). New York: Academic Press.

Nieto, O.M., Castro, J. & Fernández-Ondoño, E. (2013). “Conventional tillage versus cover crops in relation to carbon fixation in Mediterranean olive cultivation”. Plant and Soil, 365(1), 321-335. https://doi.org/ 10.1007/s11104-012-1395-0.

Organisation for Economic Co-operation Development (OECD). (2010). Guidelines for Cost-Effective Agri-Environmental Policy Measures. Paris: OECD Publishing.

Organisation for Economic Co-operation Development (OECD). (2015). Public Goods and Externalities: Agri-environmental Policy Measures in Selected OECD Countries. Paris: OECD Publishing.

Paracchini, M.L., Petersen, J.E., Hoogeveen, Y., Bamps, C., Burfield, I. & van Swaay, C. (2008). High Nature Value Farmland in Europe. An Estimate of the Distribution Patterns on the Basis of Land Cover and Biodiversity Data. Luxembourg: Office for Official Publications of the European Communities.

Rocamora-Montiel, B., Colombo, S. & Glenk, K. (2014a). “El impacto de las respuestas inconsistentes en las medidas de bienestar estimadas con el método del experimento de elección”. Economía Agraria y Recursos Naturales, 14(2), 27-48. https://doi.org/10.7201/earn.2014.02.02.

Rocamora-Montiel, B., Glenk, K. & Colombo, S. (2014b). “Territorial management contracts as a tool to enhance the sustainability of sloping and mountainous olive orchards: Evidence from a case study in Southern Spain”. Land Use Policy, 41,313-325. https://doi.org/10.1016/j.landusepol.2014.06.016.

Rodríguez-Entrena, M., Barreiro-Hurlé, J., Gómez-Limón, J.A., Espinosa-Goded, M. & Castro-Rodríguez, J. (2012). “Evaluating the demand for carbon sequestration in olive grove soils as a strategy toward mitigating climate change”. Journal of Environmental Management, 112, 368-376. https://doi.org/10.1016/j.jenvman.2012.08.004.

Rodríguez-Entrena, M., Colombo, S. & Arriaza, M. (2017). “The landscape of olive groves as a driver of the rural economy”. Land Use Policy, 65, 164-175. https://doi.org/10.1016/j.landusepol.2017.03.017.

Rodríguez-Entrena, M., Villanueva, A.J., Arriaza, M. & Gómez-Limón, J.A. (2016). ¿Es rentable el olivar andaluz? Un análisis por sistema productivo. Instituto de Investigación y Formación Agraria y Pesquera (IFAPA), Córdoba: Junta de Andalucía.

Rose, J., Bain, S. & Bliemer, M.C.J. (2011). “Experimental design strategies for stated preference studies dealing with non-market goods”. In Bennet, J. (Ed.). The International Handbook on Non-Market Environmental Valuation (pp. 273-299). Cheltenham: Edward Elgar Publishing.

Santos, R., Clemente, P., Brouwer, R., Antunes, P. & Pinto, R. (2015). “Landowner preferences for agri-environmental agreements to conserve the montado ecosystem in Portugal”. Ecological Economics, 118, 159-167. https://doi.org/10.1016/j.ecolecon.2015.07.028.

Scarpa, R., Ferrini, S. & Willis, K.G. (2005). “Performance of error component models for status-quo effects in choice experiments”. In Scarpa, R. and Alberini, A. (Eds.). Applications of Simulation Methods in Environmental and Resource Economics (pp. 247-274). Dordrecht: Springer.

Street, D.J. & Burgess, L. (2007). The Construction of Optimal Stated Choice Experiments: Theory and methods. New Jersey: John Wiley & Sons, Hoboken.

Stroosnijder, L., Mansinho, M.I. & Palese, A.M. (2008). “OLIVERO: The project analysing the future of olive production systems on sloping land in the Mediterranean basin”. Journal of Environmental Management, 89(2), 75-85. https://doi.org/10.1016/j.jenvman.2007.05.025.

Train, K. (2003). Discrete Choice Methods with Simulation. Cambridge: Cambridge University Press.

Uthes, S. & Matzdorf, B. (2013). “Studies on agri-environmental measures: A survey of the literature”. Environmental Management, 51(1), 251-266. http://doi.org/10.1007/s00267-012-9959-6.

Vedel, S.E., Jacobsen, J.B. & Thorsen, B.J. (2015). “Forest owners’ willingness to accept contracts for ecosystem service provision is sensitive to additionality”. Ecological Economics, 113, 15-24. https://doi.org/10.1016/j.ecolecon.2015.02.014.

Viladomiu, L. & Rosell, J. (2004). “Olive oil production and the rural economy of Spain”. In Brouwer, F. (Ed.). Sustaining Agriculture and the Rural Economy: Governance, policy and Multifunctionality (pp. 223-246). Cheltenham: Edward Elgar Publishing Inc.

Villanueva, A.J., Gómez-Limón, J.A., Arriaza, M. & Nekhay, O. (2014). “Analysing the provision of agricultural public goods: The case of irrigated olive groves in southern Spain”. Land Use Policy, 38, 300-313. https://doi.org/10.1016/j.landusepol.2013.11.018.

Villanueva, A.J., Gómez-Limón, J.A., Arriaza, M. & Rodríguez-Entrena, M. (2015). “The design of agri-environmental schemes: Farmers’ preferences in southern Spain”. Land Use Policy, 46, 142-154. https://doi.org/10.1016/j.landusepol.2015.02.009.

Villanueva, A.J., Glenk, K. & Rodríguez-Entrena, M. (2017a). “Protest responses and willingness to accept: Ecosystem services providers’ preferences towards incentive-based schemes”. Journal of Agricultural Economics. In press.https://doi.org/10.1111/1477-9552.12211.

Villanueva, A.J., Rodríguez-Entrena, M., Arriaza, M. & Gómez-Limón, J.A. (2017b). “Heterogeneity of farmers’ preferences towards agri-environmental schemes across different agricultural subsystems”. Journal of Environmental Planning and Management, 60(4), 684-707. http://dx.doi.org/10.108009640568.2016.1168289.

Westhoek, H.J., Overmars, K.P. & van Zeijts, H. (2013). “The provision of public goods by agriculture: Critical questions for effective and efficient policy making”. Environmental Science & Policy, 32, 5-13. https://doi.org/10.1016/j.envsci.2012.06.015.

Zahrnt, V. (2009). “Public money for public goods: Winners and losers from CAP reform”. ECIPE (European Centre for International Political Economy) Working Paper, 8, 1-37.

Abstract Views

1147
Metrics Loading ...

Metrics powered by PLOS ALM

Refbacks

  • There are currently no refbacks.




 Universitat Politècnica de València

e-ISSN: 2174-7350   ISSN: 1578-0732   https://doi.org/10.4995/earn