Choice Experiments Informing Environmental Policy
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Choice Experiments Informing Environmental Policy

A European Perspective

  • New Horizons in Environmental Economics series

Edited by Ekin Birol and Phoebe Koundouri

This innovative book is a compilation of state-of-the-art choice experiment studies undertaken in several European Union (EU) countries, including Finland, France, Greece, Ireland, Italy, Poland, Spain and the United Kingdom. The case studies presented concern a variety of environmental, agricultural and natural resource issues – such as the management of water resources, forests and agricultural landscapes; conservation of biodiversity and cultural heritage; noise pollution reduction and food labeling. The book highlights how the choice experiment method can be employed to inform efficient and effective design and implementation of various EU level agricultural and environmental policies and directives, including the Common Agricultural Policy, Water Framework Directive, Forestry Strategy, Habitats Directive and food labeling systems.
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Chapter 3: Using Mixed Logit Models to Derive Individual-Specific WTP Estimates for Landscape Improvements under Agri-environmental Schemes: Evidence from the Rural Environment Protection Scheme in Ireland

Danny Campbell, W. George Hutchinson and Riccardo Scarpa

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3. Using mixed logit models to derive individual-specific WTP estimates for landscape improvements under agri-environmental schemes: evidence from the Rural Environment Protection Scheme in Ireland Danny Campbell, W. George Hutchinson and Riccardo Scarpa INTRODUCTION After more than fifty years of European Union (EU) agricultural policies designed to support farm incomes through farm commodity prices, there has been a significant shift in emphasis. With an increased focus on areabased payments and payments for the supply of environmental goods, agrienvironmental schemes have become an important component within the Common Agricultural Policy (CAP), as also discussed in Chapters 4, 5 and 6 of this volume. Within this context, the Rural Environment Protection (REP) Scheme was introduced in the Republic of Ireland in 1994. Designed to pay farmers for carrying out their farming activities in an environmentally friendly manner, the Scheme is aimed at creating incentives for farmers to maintain and improve the broadly defined rural environment and the rural landscape. By the end of 2004, over €1.5 billion had been paid to Irish farmers under the REP Scheme. Assessing whether the Scheme has offered value for money requires an examination of both its costs and benefits. While the financial costs are readily available, calculating the benefits is more problematic. Aside from the financial benefits farmers derive from participation, the REP Scheme offers a range of benefits to society (Gorman et al., 2001; Mannion et al., 2001). Some of these are the enhanced value of...

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