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Research article2013Peer reviewed

Indicator-based agri-environmental payments: A payment-by-result model for public goods with a Swedish application

Hasund, Knut Per

Abstract

Biodiversity, cultural heritage, and scenery are major public goods produced in the agricultural landscape. Theoretically, Indicator-based Agri-Environmental Payments have the properties of providing socially efficient production. A system of seven composite state indicators, expressing the public goods of the respective fields or field elements, was developed and tested to assess if the model worked in practical policy implementation. The evaluation indicated a more efficient resource allocation, better dynamic incentives and lower transaction costs, compared to the current Swedish payment programs. A disadvantage is that such value-differentiated payments do not comply with tailoring and with present WTO-or CAP-regulations of cost-based payments. (C) 2012 Elsevier Ltd. All rights reserved.

Keywords

Agri-environmental payments; Environmental value; Indicators; Landscape; Payments for environmental services; Public goods

Published in

Land Use Policy
2013, volume: 30, number: 1, pages: 223-233
Publisher: ELSEVIER SCI LTD

SLU Authors

UKÄ Subject classification

Economics
Environmental Sciences

Publication identifier

  • DOI: https://doi.org/10.1016/j.landusepol.2012.03.011

Permanent link to this page (URI)

https://res.slu.se/id/publ/53695