Small forest landowner preferences for working forest conservation contract attributes: A case of Washington State,USA

In Washington State, small forest landowners (SFLO) play an important role in maintaining forest cover on the landscape as well as associated ecosystem services. This paper examines landowner preferences for the attributes of working forest conservation contracts (WFCC) using a choice experiment. The attributes examined are contract duration (from 10 years to perpetuity), forest management requirements, and the extent of forestland covered under the contract. We find that contract attributes are valued very differently depending on landowner objectives and harvesting behavior. Landowner characteristics and forestland spatial characteristics including distances to development and large public forestlands were found to significantly influence the likelihood of contract acceptance. While a significant portion of preference heterogeneity remains unobserved, we identify several key sources of landowner preference heterogeneity which allows for a better understanding of which landowners are likely to enroll in voluntary forest conservation contracts and may have implications for improved targeting of contracts.     

Which smallholders are willing to adopt Acacia mangium under long-term contracts? Evidence from a choice experiment study in Indonesia

Smallholder ownership of forests has grown rapidly over the last 25 years, leading to global forest transition; however, incentives are required to keep smallholders growing trees under long-term afforestation contracts. This article reports on smallholders’ willingness to join afforestation programs, growing Acacia mangium under contract on their private farmland. In a Choice Experiment, we examine the effects of policy attributes of afforestation contracts, including contract duration, labour participation, timber insurance, training opportunities, road improvement, and expected income. We report the marginal value of changes in monetary terms. A scale-extended latent class model was used to analyse preference heterogeneity in data of 323 smallholders from three different regions in Indonesia (West Kalimantan, Yogyakarta, and South Sumatera). These regions are at different forest transition stages. Our results indicate that there are four latent preference classes, which value attributes of the contract differently. Individual characteristics (risk orientation, tree growing experiences, and occupation), and regional differences explain the probability of preference class membership. Our findings have important implications for enhancing afforestation strategies that improve social welfare of smallholders in various forest transition stages.     

Farmers’ Preferences For Bluetongue Vaccination Scheme Attributes: An Integrated Choice and Latent Variable Approach

Re‐emergence of the bluetongue disease in Europe poses a continuous threat to European livestock production. Large‐scale vaccination is the most effective intervention to control virus spread. Compared to command‐and‐control approaches, voluntary vaccination approaches can be effective at lower costs, provided that farmers are willing to participate. We use a discrete choice experiment to estimate the preferences for vaccination scheme attributes, accounting for preference heterogeneity via an integrated choice and latent variable approach. In designing livestock disease control schemes, it is often argued that governments should use financial, incentive‐based policy instruments to compensate farmers for externalities, assuming they act in rational self‐interest. Our results suggest that in addition to economic motives, farmers can have intrinsic or social motives to invest in livestock disease control. Implications for the effectiveness of providing subsidy or information to motivate voluntary participation are discussed.     

Hog Producer Preferences for Marketing Contract Attributes

We use a stated preference instrument to elicit producer preferences for the attributes of risk-shifting hog marketing contracts and express acceptable producer trade-offs between contract attributes in a convenient dollar metric. Respondents value an increase in a window contract's price ceiling three to five times more than the same increase in the price floor, which suggests that hog producers dislike contracts that limit up-side price potential (limit positive skewness). The contractor's organizational form is also important. Cooperative forms are preferred by many respondents, particularly those who state that trust in the contractor is an important antecedent for any contractual relationship.     

Cow‐Calf Producer Preferences for Voluntary Traceability Systems

This article identifies preferences of US cow‐calf producers for voluntary traceability systems to better identify the potential success of alternative voluntary traceability systems. Results suggest that notable heterogeneity exists between cow‐calf producers in their preferences and the welfare effects of mandating traceability adoption. Producers are sensitive to price, managing entity and information requirements. We provide forecasts of voluntary participation rates under different price premium and discount scenarios that producers may face. This analysis has policy implications as success of voluntary traceability systems hinges critically upon cow‐calf producer preferences.     

农户环境友好型农业技术选择行为及异质性基于离散选择实验的研究

目的 中国是世界上最大的化肥和农药使用国,农业绿色发展面临严峻挑战,这与缺少国家层面和农田管理层面为农户专门设计的环境友好型技术及配套激励政策不无关系。方法 文章利用离散选择实验（Discrete choice experiment,DCE）,以环境友好型农业技术（Agri-environmental technologies,AETs）及配套政策为基础设计农业环境政策方案（Agri-environmental schemes,AES）。用混合Logit模型（Mixed Logit model,MXL）来揭示农户在假想的AES情景下对AETs的选择行为及影响因素,证实农户偏好异质性的存在。后续条件Logit模型（Conditional Logit model,CLM）引入交互变量进一步揭示农户的偏好异质性来源。结果 研究表明补偿额度及农户社会经济变量是影响其参与AES的主要因素,且相对于退出保持现有耕种方式不变农户更偏好于实施AES。该研究还证实了农户对AETs选择偏好存在异质性,因此灵活的政策设计是AES顺利实施的重要保障。结论 鉴于对农户选择偏好及异质性的充分了解,政策制定者可以科学地制定和微调农业环境政策,设计AES以最大限度地减少各类农户反对意见,吸引绝大多数农户采纳AETs实践,提高项目参与率。     

Valuing a Natura 2000 network site to inform land use options using a discrete choice experiment: An illustration from the Basque Country

One of the main problems that public institutions face in the management of protected areas, such as the European Natura 2000 network, is determining how to design and implement sustainable management plans that account for the wide range of marketed and non-marketed benefits they provide to society. This paper presents an application of a stated preference valuation approach aimed at evaluating the social preferences of the population of the Basque Country, Spain, for the key attributes of a regional Natura 2000 network site. According to our results, individuals’ willingness-to-pay (WTP) is higher for attributes associated with non-use values (native tree species and biodiversity conservation) than for attributes associated with use values (agricultural development and commercial forestry). The paper concludes that management policies related to Natura 2000 network sites should account for both for the importance of non-use values and the heterogeneity of the population's preferences in order to minimize potential land use conflicts.     

Community acceptance of biodiversity offsets: evidence from a choice experiment

This study of the community's acceptance of biodiversity offsets in Australia provides insights relevant to future revisions of offset policies of both State and Commonwealth Governments. A choice experiment was used to measure preferences for the general acceptability of offsetting, and for a number of attributes that define how an offset can be implemented. Based on a sample of 204 respondents from Perth, WA, we found that the majority of respondents did not object to the practice of biodiversity offsetting in general. A minority of respondents preferred that offset actions be direct, but most accepted a combination of direct and indirect actions. Individuals generally preferred that the offset be located near the site of impact, and it became more unacceptable the further away that it was located. However, there was heterogeneity in preferences for protecting the impacted species or a more endangered one.     

What Do Farmers Want From Agri‐Environmental Scheme Design? A Choice Experiment Approach

Agri‐environmental schemes (AES) have had a limited effect on European agriculture due to farmers’ reluctance to participate. Information on how farmers react when AES characteristics are modified can be an important input to the design of such policies. This article investigates farmers’ preferences for different design options in a specific AES aimed at encouraging nitrogen fixing crops in marginal dry‐land areas in Spain. We use a choice experiment survey conducted in two regions (Aragón and Andalusia). The analysis employs an error component random parameter logit model allowing for preference heterogeneity and correlation amongst the non‐status quo alternatives. Farmers show a strong preference for maintaining their current management strategies; however, significant savings in cost or increased participation can be obtained by modifying some AES attributes.     

Rural Amenity Values and Length of Residency

New residents of rural communities are often assumed to have preferences for development and conservation that differ from those of longer-term residents. However, the literature offers little to quantify presumed preference heterogeneity. This article assesses whether stated preferences differ according to length of residency. Results are based on a conjoint (choice experiment) survey of Rhode Island rural residents. Heterogeneity—according to length of town residency—is modeled using dummy variables, multiplicative interactions, and Lagrangian interpolation polynomials. Results are compared across the three models, and identify a range of attributes for which willingness to pay depends on length of residency.     

Protest Responses and Willingness to Accept: Ecosystem Services Providers’ Preferences towards Incentive‐Based Schemes

The identification and treatment of protest responses in stated preference surveys has long been subject to debate. We analyse protest responses while investigating ecosystem services providers’ preferences for incentive‐based schemes. We use a choice experiment for olive farmers’ preferences for agri‐environmental scheme participation in southern Spain. Our two main objectives are: first, to identify and discuss a range of possible motives for protest responses that emerge in a WTA context; second, we analyse the impact on WTA estimates of censoring serial non‐participation linked to protest or high compensation requirements (very high takers). Using a random parameter logit model in WTA space, we find that the inclusion or exclusion of serial non‐participants in the analysis can have a significant impact on marginal and total WTA estimates. Based on the findings, the paper makes recommendations on how to reduce the incidence of protest responses through survey design, regarding the identification of protesters as opposed to very high takers, and regarding the treatment of both groups of respondents for WTA estimation.     

What role for cooperation in conservation tenders? Paying farmer groups in the High Andes

This paper sheds light on the potential of group-level tenders to enhance conservation where it depends on cooperation of small-scale farmers. We analyze data from two pilot payment for ecosystem service (PES) schemes focused on the conservation of agricultural biodiversity in the Bolivian and Peruvian Andes. Contracts were assigned to farming groups who could choose between different types of in-kind payments with varying degrees of divisibility between group members. Our main results indicate that: (1) stronger general patterns of collective action are positively related to the level of cooperation in group-bid making; (2) where collective action is robust, collective payments seem to provide stronger conservation incentives than individual payments; (3) collective payments could mitigate some potential rent-seeking behavior; (4) selecting bid offers based on both a ‘cooperation’ criterion and conservation land area offered does not overly compromise the cost-effectiveness of PES; and (5) group-level contracts may create strong incentives for contract compliance. Hence, combining farmer group-level contracts with collective in-kind payments can enhance the cost-effectiveness of conservation tenders, while generating co-benefits in terms of increased interaction and social capital among group members.     

Adapting to the gender order: Voluntary conservation by forest owners in Finland

In this article we explore the hidden gender order of the biodiversity policy and, in particular, the social and societal positions offered to male and female forest owners in voluntary conservation. Two studies were conducted in the region where the National Biodiversity Program for Southern Finland (“METSO”) has been implemented. Study 1 focused on forest owners’ discursive practices that construct different actor positions to female and male forest owners; 27 interviews with forest owners were analyzed. Three discourses – “conservation threatens forestry,” “forestry threatens conservation,” and “good forestry is conservation” – were identified. Forest owners typically described themselves as “loggers” who were explicitly described as masculine. This was paired with the feminine position of “bystander.” The other two positions found, “protectors” and “political agents”, by contrast, were discussed as non-gendered positions. In Study 2 we examined quantitatively how individual forest owners’ nature conservation preferences and willingness to conserve forests is mediated by gender. The responses of 965 owners were analyzed with structural equation modeling. The endorsement of nature conservation preferences was found to increase willingness to conserve forests only among male owners. The results illustrate how individual forest owners adapt their nature conservation preferences to forestry's masculine socio-cultural context.     

An investigation into the type of farmer who chose to participate in Rural Environment Protection Scheme (REPS) and the role of institutional change in influencing scheme effectiveness

This paper examines the voluntary aspect of the Rural Environment Protection Scheme (REPS) in Ireland by modelling the type of farmer who chose to participate in the agri-environment programme from 1995 to 2010. The impact of changing scheme payment rates and organic nitrogen restrictions on scheme uptake are also examined. In order to examine some of the heterogeneity of variable influence on participation across the different phases of REPS, separate models for each of the four phases were ran (one for a reference year in each phase). Results from the random effects model show that the type of farmer who was most likely to participate in REPS over time had an extensive farm system, low income and spent more hours working on-farm than their non-REPS counterparts. Single year logit model results were compared to the random effects panel logit model for the entire sample period. The results suggest that the individual year models do a better job in demonstrating how farmers responded to contractual changes in the scheme over time (in terms of their participation decision) compared to the panel model.     

Heterogeneous Demand and Supply for an Insurance‐linked Credit Product in Kenya: A Stated Choice Experiment Approach

We employ a discrete choice experiment to elicit demand and supply side preferences for insurance‐linked credit, a promising market‐based tool for managing agricultural weather risks and providing access to credit for farmers. We estimate preference heterogeneity using primary data from smallholder farmers and managers of lenders/insurers combined with household socio‐economic survey data in Kenya. We analyse the choice data using maximum simulated likelihood and Hierarchical Bayes estimation of a mixed logit model. Although there are some similarities, we find that there is conflicting demand and supply side preferences for credit terms, collateral requirements, and loan use flexibility. We also analyse willingness to buy and willingness to offer for farmers and suppliers, respectively, for the risk premium for different attributes and their levels. Identifying the preferred attributes and levels for both farmers and financial institutions can guide optimal packaging of insurance and credit providing market participation and adoption motivation for insurance‐bundled credit product.     

Auctions for conservation contracts: an empirical examination of Victoria's BushTender trial

The present paper proposes that markets for nature conservation on private land are missing because of the problem of asymmetric information. An auction of conservation contracts was designed to reveal hidden information needed to facilitate meaningful transactions between landholders and government. The present paper describes the key elements of auction and contract design employed and the results obtained from a pilot auction of conservation contracts run in two regions of Victoria. The pilot demonstrated that it was possible to create at least the supply side of a market for nature conservation and in conjunction with a defined budget, prices were discovered and resources allocated through contracts with landholders. The present paper compares a discriminative price auction with a hypothetical fixed-price scheme showing that an auction could offer large cost savings to governments interested in nature conservation on private land. The paper identifies some important design problems that would need to be solved before auctions could be applied more broadly including: multiple complementary outcomes, reserve prices, sequential auction design and contract design. Nevertheless, the paper does show that auctioning conservation contracts for environmental outcomes is an important new policy mechanism that deserves closer examination.     

Context sensitive policy instruments: A multi-criteria decision analysis for safeguarding forest habitats in Southwestern Finland

Environmental and conservation decisions are often complex, which results in complexity also in policy assessments. Conservation decisions have implications for different stakeholders and typically draw on multidisciplinary knowledge bases, incorporating natural, physical and social sciences, politics and ethics. Multi-Criteria Decision Analysis (MCDA) is a potentially important tool for supporting conservation policy decisions. This article reports a spatially referenced MCDA of policy instrument scenarios for conserving forest biodiversity in Southwestern Finland. The effects of the realistic policy instruments designed in dialogue with stakeholders included voluntary permanent conservation, enforced spatially concentrated permanent conservation, voluntary permanent conservation with active nature management, and voluntary temporary conservation. These instruments were compared by combining forest-owner survey, MCDA and ex ante impact evaluation. The main objective was to find the forest biodiversity conservation instrument that would produce the highest total benefit. The effects of the different instruments were evaluated with ecological, economic, social, and institutional criteria after a 20-year time period. The results showed minor differences between the instruments, with voluntary permanent and voluntary temporary conservation producing the largest total benefit. Despite the small differences, the analysis was robust in showing that voluntary instruments were more favourable than enforced permanent conservation.     

Using choice experiments to value catchment and estuary health in Tasmania with individual preference heterogeneity*

Choice experiments (CE) have become widespread as an approach to environmental valuation in both Australia and overseas. However, there are few valuation studies that have addressed natural resource management (NRM) changes in Tasmania. Furthermore, few studies have focussed on the estimation of estuary values. The CE study described in this paper aims to analyse community preferences for NRM options in the George catchment, Tasmania. Catchment health attributes were: the length of native riverside vegetation; the number of rare native animal and plant species in the George catchment; and area of healthy seagrass beds in the Georges Bay, which was used as a measure of estuary condition. Mixed logit models with interactions between socio‐economic variables and the choice attributes were estimated to account for systematic and random taste heterogeneity across respondents. Results reveal considerable variation in preferences towards the attributes and show that value estimates are significantly impacted by the way in which we account for preference heterogeneity. Preference heterogeneity thus needs to be considered when estimating community willingness‐to‐pay for environmental changes. This study further shows little responsiveness to the presented changes in estuary seagrass area.     

Targeting Conservation Investments in Heterogeneous Landscapes: A Distance-Function Approach and Application to Watershed Management

To achieve an environmental objective at least cost, decision makers must integrate information about spatially variable biophysical and economic conditions. Although the biophysical attributes that contribute to an environmental outcome are often known, the way in which these attributes interact to produce the outcome is often unknown. We introduce a nonparametric conservation targeting approach that relies on distance functions to cost-efficiently allocate conservation funds. We apply the approach empirically to the case of conservation contracting for water-quality objectives. The contract portfolios derived from the application have many desirable properties, including intuitive appeal and robust performance across plausible parametric scoring measures.     

Motivations to grow energy crops: the role of crop and contract attributes

Perennial energy crops are a promising source of bioenergy whose production involves production risks, long‐term commitment of land and need for crop‐specific investments without the coverage of crop insurance potentially available for conventional crops. We conduct a choice experiment in five states in the Midwestern and South‐central regions of the U.S. to examine the effect of crop‐contract attributes on the joint discrete‐continuous choice decisions to adopt an energy crop and convert acres to it from a status quo use, while controlling for the effect of various farmers’ risk and time preferences, sociodemographic characteristics, and availability of crop insurance for conventional crops. We find robust evidence that high discount rates, high upfront establishment costs and need for crop‐specific investments create disincentives for adoption and allocation of land to energy crop production. The effects of riskiness of returns and risk aversion are less robust across specifications. The effect of conventional crop insurance on the energy crop adoption decision differs across types of insurance; in particular, farmers with revenue insurance are statistically significantly less likely to adopt an energy crop. Our results have implications for the design of effective contracts and policy incentives to induce the production of energy crops.