Improving agricultural pollution abatement through result-based payment schemes

Sidemo Holm, WilliamLund University,Lunds universitet,BECC: Biodiversity and Ecosystem services in a Changing Climate,Centrum för miljö- och klimatvetenskap (CEC),Naturvetenskapliga fakulteten,Centre for Environmental and Climate Science (CEC),Faculty of Science (författare)

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.

Smith, Henrik G.Lund University,Lunds universitet,Biodiversitet,Biologiska institutionen,Naturvetenskapliga fakulteten,BECC: Biodiversity and Ecosystem services in a Changing Climate,Centrum för miljö- och klimatvetenskap (CEC),Biodiversity,Department of Biology,Faculty of Science,Centre for Environmental and Climate Science (CEC)(Swepub:lu)ekol-hsm (författare)
Brady, MarkSwedish University of Agricultural Sciences,Sveriges lantbruksuniversitet,Lund University,Lunds universitet,AgriFood Economics Centre, SLU,AgriFood Economics Centre, Ekonomihögskolan vid Lunds universitet,Ekonomihögskolan,Centrum för miljö- och klimatvetenskap (CEC),Naturvetenskapliga fakulteten,AgriFood Economics Centre, SLU,AgriFood Economics Centre, Lund University School of Economics and Management,Lund University School of Economics and Management, LUSEM,Centre for Environmental and Climate Science (CEC),Faculty of Science,Institutionen för ekonomi,Department of Economics(Swepub:slu)49141 (författare)
BECC: Biodiversity and Ecosystem services in a Changing ClimateCentrum för miljö- och klimatvetenskap (CEC) (creator_code:org_t)
Sveriges lantbruksuniversitet

Av författaren/redakt...: Sidemo Holm, Wil ...; Smith, Henrik G.; Brady, Mark

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