Farmers’ preferences toward an outcome‐based payment for ecosystem service scheme in Japan

Tanaka, K., Hanley, N. and Kuhfuss, L. (2022) Farmers’ preferences toward an outcome‐based payment for ecosystem service scheme in Japan. Journal of Agricultural Economics, 73(3), pp. 720-738. (doi: 10.1111/1477-9552.12478)

Abstract

We estimate farmers’ preferences for outcome-based (or results-based) payment for ecosystem service scheme in Japan. To this end, we use a two-stage stated preference approach—the first stage models farmers’ decisions to adopt outcome-based contracts using a discrete choice experiment. The second stage estimates the areas of land which farmers who choose to participate will enrol in the scheme. Based on a sample of 333 respondents, our results show that most farmers are willing to participate in outcome-based contacts. A variety of contract attributes are found to influence farmers’ decisions on participation. However, once a farmer decides to participate, their decision on how much farmland to enrol in is likely to be influenced solely by the per-hectare payment. Therefore, to encourage more farmers to participate and enrol more farmland, policy-makers’ decisions on the level of payments offered are critically important.

• Item Type: Articles
• Additional Information: This study was funded by the JSPS Grant-in-Aid for Scientific Research (B) ‘Inducing innovation through payment by results (PbR) in agri-Environmental policies’ (20H01493).
• Keywords: agri-environment schemes, choice experiments, Japan, outcome-based payments, results-based payments, payment for ecosystem services, stated preferences.
• Status: Published
• Refereed: Yes
• Glasgow Author(s) Enlighten ID: Hanley, Professor Nicholas
• Authors: Tanaka, K., Hanley, N., and Kuhfuss, L.
• College/School: College of Medical Veterinary and Life Sciences > School of Biodiversity, One Health & Veterinary Medicine
• Journal Name: Journal of Agricultural Economics
• Publisher: Wiley
• ISSN: 0021-857X
• ISSN (Online): 1477-9552
• Published Online: 19 January 2022