Rommel, Jens
- Institutionen för ekonomi, Sveriges lantbruksuniversitet
Volumetric Choice Experiments (VCE) offer a novel approach to studying individual behavior, traditionally explored through Discrete Choice Experiments. This study assesses the efficacy of VCE in understanding farmers' preferences regarding new results-based and practice-based agri-environmental contracts, using a comprehensive international stated preference survey. Recognizing that farmers often act as households maximizing utility rather than purely profit-driven producers, we provide justification for applying a utility-based framework in this context. The subsidy-driven nature of agri-environmental contracts poses a challenge for the use of multiple discrete-continuous choice models suited for VCE data. Conventionally, these models utilize an income-based budget equation, which would not be binding given the willingness-to-accept format of the experiment. To operationalize our model, we adopt a land-based budget equation, facilitating the development of a novel compensating variation measure for welfare analysis. Our findings reveal insightful contrasts between VCE-derived data and traditional DCE results, highlighting the complexities encountered and the comparability of outcomes. By delving into the distinct attributes of VCE and justifying the utility-based approach for farmers, this research not only bridges a critical gap in the literature but also enhances our understanding of farmer behavior, with significant implications for the design and implementation of future agri-environmental policies.
Volumetric choice experiment; Multiple discrete-continuous choice; Farm household utility; Agri-environmental-climate measures; Farmer preferences; Biodiversity; Common Agricultural Policy
Resource and Energy Economics
2026, volym: 86, artikelnummer: 101572
Nationalekonomi
https://res.slu.se/id/publ/146854