Quantifying the multifunctionality of fjord and mountain agriculture by means of sociocultural and economic valuation of ecosystem services

The objective of this study was to define the value of the main market and nonmarket functions of fjord and mountain agroecosystems in Nordic countries by means of the ecosystem services framework. First, we used qualitative methods (interviews of farmers and other stakeholders in the area of study) to identify sociocultural perceptions of multifunctional agriculture. Next, we used survey-based stated-preference methods to rank and value in economic terms the most important functions (corresponding to the four types of ecosystem services) according to the local (residents of the study area) and the general (residents of a nearby area) populations. The sociocultural perceptions of multifunctionality among local stakeholders were similar, but differences in the relative importance of the functions reflected particular interests (agriculture compared with tourism). Both the local and the general populations attached great importance to the production and availability of quality foods. The general population showed very homogeneous preferences among ecosystem services, but local people rated them very differently. Local people ranked a more agricultural landscape very high. The total economic value of fjord and mountain agroecosystem was 850 € per person per year. The willingness to pay for the provision of ecosystem services under a policy scenario of further development of multifunctional agriculture clearly exceeded the current level of public support. The welfare loss that society would experience in a scenario of further abandonment of agriculture was even greater. We discuss the establishment of payments for ecosystem services for addressing the undersupply of nonmarket functions of agriculture.