Environmental payments in conflicting situations between nature provision and cost minimization: a political economy approach
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We will analyze a newly emerging conflict within the second pillar of the rural development policy of the EU: a conflict between those farmers, who want to participate in high nature value agriculture, and farmers, who feel negatively impacted by supporting nature provision. We see a link through competition for land between nature provision in agriculture and cost minimal production of commercial farmers. The idea is to model this conflict using a political bargain approach and make a contribution on how to solve the conflict by innovative institutional arrangements. The power of groups will be analyzed and what governments can do.