Abstract

Action-based payments that compensate farmers for adopting land-management measures to preserve and enhance the environment have been criticized for being ineffective. The root of the problem is that farmers are not paid for achieving a desired environmental benefit, but compensated for their costs of management. There is growing interest in formulating result-based economic incentives. By paying for an environmental benefit and allowing flexibility in how to achieve it, farmers are given an incentive to exploit their comparative advantages for achieving a desired environmental benefit cost-effectively. However, the feasibility and relative effectiveness of result-based payments for reducing agricultural pollution is contentious. In this study, we designed and evaluated a result-based payment scheme for nonpoint-source pollution abatement from arable land. In a case study in southern Sweden, the cost-effectiveness of the new scheme was compared with that of an existing action-based scheme for vegetated buffer strips to prevent the pollutant, particulate phosphorus, from reaching water resources. The results suggest that result-based payment schemes based on modeled outcomes of pollution abatement are feasible and will considerably improve cost-effectiveness compared to action-based schemes, by relocating buffer strips to where they are more effective and not simply where they have the lowest costs for farmers.

Keywords

Performance based policy; Nonpoint source pollution; Nutrient runoff; Buffer strip; Agri-environmental scheme; Cost-effective

Published in

Land Use Policy
2018, Volume: 77, pages: 209-219
Publisher: ELSEVIER SCI LTD

SLU Authors

• Brady, Mark

  • Department of Economics, Swedish University of Agricultural Sciences
    
  • Lund University

Sustainable Development Goals

SDG15 Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss


UKÄ Subject classification

Environmental Sciences related to Agriculture and Land-use


Publication identifier

DOI: https://doi.org/10.1016/j.landusepol.2018.05.017

Permanent link to this page (URI)

https://res.slu.se/id/publ/96615