Land heterogeneity, agricultural income forgone and environmental benefit: an assessment of incentive compatibility problems in environmental stewardship schemes

Fraser, Robert (2009) Land heterogeneity, agricultural income forgone and environmental benefit: an assessment of incentive compatibility problems in environmental stewardship schemes. Journal of Agricultural Economics, 60 (1). pp. 190-201. ISSN 0021-857X . (The full text of this publication is not available from this repository)

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Official URL
http://dx.doi.org/10.1016/j.ecolecon.2006.02.019

Abstract

This paper examines the issue of incentive-compatibility within environmental stewardship schemes where incentive payments to farmers to provide environmental goods and services are based on foregone agricultural income. The particular focus of the paper is on the role of land heterogeneity, whether in terms of agricultural value or environmental value, in leading to divergences between the actual and the socially optimal level of provision of environmental goods and services. It is shown that such goods and services are systematically over or under-provided depending on the characteristics of land heterogeneity both within and between landscape regions. It is therefore concluded that incentive payments should be based on social willingness-to pay for the provision of environmental goods and services.

Item Type: Article
Uncontrolled keywords: land heterogeneity; agricultural income forgone; incentive compatibility; environmental stewardship; D82; L51; Q18; Q58
Subjects: S Agriculture > S Agriculture (General)
H Social Sciences > HB Economic Theory
Divisions: Faculties > Social Sciences > School of Economics
Depositing User: Robert Fraser
Date Deposited: 11 Nov 2009 14:06
Last Modified: 19 May 2014 13:50
Resource URI: http://kar.kent.ac.uk/id/eprint/20133 (The current URI for this page, for reference purposes)
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