Heterogeneous Preferences for Public Goods Provided by Agriculture in a Region of Intensive Agricultural Production: The Case of the Marchfeld

The aim of this paper is to elicit the marginal willingness to pay (MWTP) for the improved provision of public goods (PGs) by agriculture in a region of intensive agricultural production, embodying many of the environmental problems related to agriculture within and outside the European Union (EU)....

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Bibliographic Details
Published in:Sustainability 2018-06, Vol.10 (6), p.2061
Main Authors: Niedermayr, Andreas, Schaller, Lena, Mariel, Petr, Kieninger, Pia, Kantelhardt, Jochen
Format: Article
Language:English
Subjects:
Agricultural development
Agricultural economics
Agricultural production
Agriculture
Demographics
Economic models
Farm management
Groundwater
Groundwater quality
Heterogeneity
Landscape
Logit models
Parameter estimation
Soil stability
Sustainability
Sustainable agriculture
Water quality
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Summary:The aim of this paper is to elicit the marginal willingness to pay (MWTP) for the improved provision of public goods (PGs) by agriculture in a region of intensive agricultural production, embodying many of the environmental problems related to agriculture within and outside the European Union (EU). Our analysis was based on a participatory approach, combining the involvement of local stakeholders and a discrete choice experiment (DCE) in the Marchfeld region in Austria. We estimated a random parameters logit model (RPL), including interactions with socio-demographic factors, to disentangle preference heterogeneity and find a positive MWTP of the local population for all three PGs analyzed: (i) groundwater quality; (ii) landscape quality; and (iii) soil functionality in connection with climate stability. Furthermore, MWTP varies considerably with respect to age, farmers/non-farmers and locals/incomers. Further research could combine the results of this demand-side valuation with those of a supply-side valuation, where the opportunity costs of different management options for farmers are estimated. Based on such a cost–benefit analysis and further participation of local stakeholders, new governance mechanisms for the smart and sustainable provision of PGs by agriculture could be developed for the Marchfeld region and for comparable European regions.
ISSN:2071-1050
2071-1050
DOI:10.3390/su10062061