Land Heterogeneity, Agricultural Income Forgone and Environmental Benefit: An Assessment of Incentive Compatibility Problems in Environmental Stewardship Schemes
No hay miniatura disponible
Fecha
Autores
Título de la revista
ISSN de la revista
Título del volumen
Editor
Resumen
Descripción
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.