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Improving agricultural pollution abatement through result-based payment schemes

Sidemo Holm, William LU ; Smith, Henrik G. LU and Brady, Mark LU (2018) In Land Use Policy 77. p.209-219
Abstract
Action-based payments that compensate farmers for adopting land-management measures to preserve and en- hance the environment have been criticized for being ineffective. The root of the problem is that farmers are not paid for achieving a desired environmental benefit, but compensated for their costs of management. There is growing interest in formulating result-based economic incentives. By paying for an environmental benefit and allowing flexibility in how to achieve it, farmers are given an incentive to exploit their comparative advantages for achieving a desired environmental benefit cost-effectively. However, the feasibility and relative effectiveness of result-based payments for reducing agricultural pollution is contentious. In this... (More)
Action-based payments that compensate farmers for adopting land-management measures to preserve and en- hance the environment have been criticized for being ineffective. The root of the problem is that farmers are not paid for achieving a desired environmental benefit, but compensated for their costs of management. There is growing interest in formulating result-based economic incentives. By paying for an environmental benefit and allowing flexibility in how to achieve it, farmers are given an incentive to exploit their comparative advantages for achieving a desired environmental benefit cost-effectively. However, the feasibility and relative effectiveness of result-based payments for reducing agricultural pollution is contentious. In this study, we designed and evaluated a result-based payment scheme for nonpoint-source pollution abatement from arable land. In a case study in southern Sweden, the cost-effectiveness of the new scheme was compared with that of an existing action-based scheme for vegetated buffer strips to prevent the pollutant, particulate phosphorus, from reaching water resources. The results suggest that result-based payment schemes based on modeled outcomes of pollution abatement are feasible and will considerably improve cost-effectiveness compared to action-based schemes, by relocating buffer strips to where they are more effective and not simply where they have the lowest costs for farmers. (Less)
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author
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
Performance based policy, Nonpoint source pollution, Nutrient runoff, Buffer strip, Agri-environmental scheme, Cost-effective
in
Land Use Policy
volume
77
pages
209 - 219
publisher
Elsevier
external identifiers
  • scopus:85054294833
ISSN
0264-8377
DOI
10.1016/j.landusepol.2018.05.017
language
English
LU publication?
yes
id
d40d067b-fdd0-4562-b6be-3a150a80072a
date added to LUP
2018-09-05 11:46:12
date last changed
2019-05-21 04:10:31
@article{d40d067b-fdd0-4562-b6be-3a150a80072a,
  abstract     = {Action-based payments that compensate farmers for adopting land-management measures to preserve and en- hance the environment have been criticized for being ineffective. The root of the problem is that farmers are not paid for achieving a desired environmental benefit, but compensated for their costs of management. There is growing interest in formulating result-based economic incentives. By paying for an environmental benefit and allowing flexibility in how to achieve it, farmers are given an incentive to exploit their comparative advantages for achieving a desired environmental benefit cost-effectively. However, the feasibility and relative effectiveness of result-based payments for reducing agricultural pollution is contentious. In this study, we designed and evaluated a result-based payment scheme for nonpoint-source pollution abatement from arable land. In a case study in southern Sweden, the cost-effectiveness of the new scheme was compared with that of an existing action-based scheme for vegetated buffer strips to prevent the pollutant, particulate phosphorus, from reaching water resources. The results suggest that result-based payment schemes based on modeled outcomes of pollution abatement are feasible and will considerably improve cost-effectiveness compared to action-based schemes, by relocating buffer strips to where they are more effective and not simply where they have the lowest costs for farmers.},
  author       = {Sidemo Holm, William and Smith, Henrik G. and Brady, Mark},
  issn         = {0264-8377},
  keyword      = {Performance based policy,Nonpoint source pollution,Nutrient runoff,Buffer strip,Agri-environmental scheme,Cost-effective},
  language     = {eng},
  month        = {05},
  pages        = {209--219},
  publisher    = {Elsevier},
  series       = {Land Use Policy},
  title        = {Improving agricultural pollution abatement through result-based payment schemes},
  url          = {http://dx.doi.org/10.1016/j.landusepol.2018.05.017},
  volume       = {77},
  year         = {2018},
}