LANDSCAPE AMENITIES Landscape Series VOLUME 2 Series Editors: Henri Décamps, Centre National de la Recherche Scientifique, Toulouse, France Bärbel Tress, Wageningen University, Wageningen, The Netherlands Gunther Tress, Wageningen University, Wageningen, The Netherlands Aims & Scope: The Landscape Series publishes manuscripts approaching landscape from a broad perspective. Landscapes are home and livelihood for people, house historic artefacts, and comprise systems of physical, chemical and biological processes. Landscapes are shaped and governed by human societies, who base their existence on the use of the natural resources. People enjoy the aesthetic qualities of landscapes and their recreational facilities, and design new landscapes. The Landscape Series aims to add new and innovative insights into landscapes. It encourages contributions on theory development as well as applied studies, which may act as best practice. Problem-solving approaches and contributions to planning and management of landscape are most welcome. The Landscape Series wishes to attract outstanding studies from the natural sciences, social sciences, humanities as well as the arts and does especially provide a forum for publications resulting from interdisciplinary and transdisciplinary acting teams. Ideally, the contributions help the application of findings from landscape research to practice, and to feed back again from practice into research. Landscape Amenities Economic Assessment of Agricultural Landscapes ISABELVANSLEMBROUCK University of Ghent, Belgium and GUIDO VAN HUYLENBROECK University of Ghent, Belgium AC.I.P. Catalogue record for this book is available from the Library of Congress. ISBN-10 1-4020-3134-3 (HB) Springer Dordrecht, Berlin, Heidelberg, New York ISBN-10 1-4020-3172-6 (e-book) Springer Dordrecht, Berlin, Heidelberg, New York ISBN-13 978-1-4020-3134-2 (HB) Springer Dordrecht, Berlin, Heidelberg, New York ISBN-13 978-1-4020-3172-4 (e-book) Springer Dordrecht, Berlin, Heidelberg, New York Published by Springer, P.O. Box 17, 3300 AADordrecht, The Netherlands. www.springeronline.com Printed on acid-free paper Cover photograph by Bärbel Tress and Gunther Tress All Rights Reserved © 2005 Springer No part of this work may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, microfilming, recording or otherwise, without written permission from the Publisher, with the exception of any material supplied specifically for the purpose of being entered and executed on a computer system, for exclusive use by the purchaser of the work. Printed in the Netherlands. Foreword by the series editors Our motivation for this series was to provide a forum for dealing with the complex and challenging variety of landscapes. The series should bring to the fore the positive and connective aspects of dealing with this variety instead of seeing them as barriers and separating elements. Yet there is not only the variety of the landscapes as such, but also the multiplicity of academic disciplines and approaches that characterize the study of landscapes. We also intended to provide examples of integration of academic knowledge cultures on one topic, rather than having different volumes presenting knowledge from different disciplines. ‘Landscape Amenities’ is the second volume of the series. The monograph focuses on the socio-economic evaluation of agricultural landscapes in its broadest sense. The book presents the variety of services provided by farmers and agricultural landscapes. Instead of limiting the book on one perspective, Vanslembrouck and Van Huylenbrouck discuss landscape amenities from the farmers’ as well as consumers’ perspectives. These sometimes contrasting views are analysed and synthesized towards a set of recommendations for future landscape management and policy development. The authors offer insight into different types of landscape amenities including non-commodity outputs such as recreational and tourism functions and their economic assessment using the multifunctionality concept as a framework. We recommend the book to students, researchers, professionals, and decision-makers involved in assessing and developing agricultural landscapes. Toulouse and Wageningen, December 2004 Henri Décamps Bärbel Tress Gunther Tress CONTENTS Foreword___________________________________________________ v Contents____________________________________________________ vii Introduction____________________________________________ xi 1. Background and scope of the research _______________________ xi 2. Objectives_______________________________________________xii 3. Outline_________________________________________________xiii Part I : Multifunctionality of agriculture 1. Multifunctionality in a theoretical framework_______________ 1 1. Introduction_____________________________________________ 1 2. Defining multifunctionality ________________________________ 3 3. Key concepts and questions ________________________________ 5 3.1. Production aspects of multifunctionality__________________________ 5 3.2. Externality and public good aspects of multifunctionality ____________ 7 3.3. Externalities, public goods and economic efficiency________________ 11 3.4. Market failure _____________________________________________ 22 4. Analytical framework____________________________________ 22 5. Concluding comments____________________________________ 25 2. Valuing the outputs of multifunctional agriculture__________ 27 1. The meaning of environmental valuation____________________ 27 2. Defining and measuring welfare changes____________________ 27 3. Approaches to measuring values___________________________ 33 4. Total economic value_____________________________________ 34 5. Valuation methodologies _________________________________ 35 5.1. Direct and indirect evidence from existing markets ________________ 37 5.2. Evidence from surveys - contingent valuation_____________________ 38 3. Landscape amenities from agriculture____________________ 41 1. Landscape as a non-commodity output from agriculture_______ 41 1.1. Definitions________________________________________________ 41 1.2. Key characteristics__________________________________________ 44 1.3. The relationship between agriculture and landscape________________ 45 vii viii 2. The economics of landscape conservation____________________ 48 2.1. The value of agricultural landscape_____________________________ 48 2.2. Economic valuation of landscape ______________________________ 48 2.3. Approaches to value the landscape amenities from agriculture________ 49 PART II: Demand for landscape amenities from agriculture 4. Rural tourism________________________________________ 59 1. Introduction____________________________________________ 59 2. Tourism in rural areas ___________________________________ 60 2.1. Concepts and definitions_____________________________________ 60 2.2. Rural tourism and agriculture _________________________________ 62 3. Demand for rural tourism: a conceptual model_______________ 64 4. Rural tourism in Flanders ________________________________ 67 5. Impact from agriculture on rural tourism _________________ 69 1. Introduction____________________________________________ 69 2. The hedonic pricing method (HPM) ________________________ 70 2.1. Theoretical background______________________________________ 70 2.2. A critique of the hedonic approach _____________________________ 74 2.3. Application in the case of rural tourism__________________________ 75 3. Data __________________________________________________ 76 4. Results ________________________________________________ 78 5. Discussion______________________________________________ 80 6. Measuring the recreational value of the agricultural landscape 87 1. Introduction____________________________________________ 87 2. The travel costmethod (TCM)_____________________________ 88 2.1. Approaches to recreation site modelling_________________________ 88 2.2. Theoretical issues __________________________________________ 88 2.3. Problems with the TCM______________________________________ 93 3. Data __________________________________________________ 95 3.1. The survey________________________________________________ 95 3.2. Some descriptive outcomes___________________________________ 95 4. Empirical specification and analysis_______________________ 103 4.1. Visit cost ________________________________________________ 103 4.2. Socio-economic attributes___________________________________ 104 4.3. Agricultural landscape index_________________________________ 105 ix 4.4. Substitutesites____________________________________________ 105 5. Estimation results and analysis ___________________________ 105 5.1. Application of the zonal travel cost approach____________________ 105 5.2. Application of the individual travel cost approach ________________ 107 5.3. Application of the Contingent Activity Method (CAM)____________ 110 6. Conclusions ___________________________________________ 111 PART III: Supply of landscape amenities from agriculture 7. Farmers' supply of landscape amenities _________________ 117 1. Introduction___________________________________________ 117 2. Supply of landscape elements in the European policy context __ 118 2.1. The responsibilityof the CAP________________________________ 119 2.2. The agri-environment challenge ______________________________ 120 2.3. Problems with the implementation of the agri-environmental measures 122 3. Farmers'provision oflandscape amenities__________________ 124 3.1. Farmers' decision making ___________________________________ 124 3.2. Landscape elements as joint products from agricultural production___ 124 4. Farmers' willingness to participate in agri-environmental measures: a conceptual framework__________________________ 126 4.1. Literature review__________________________________________ 126 4.2. Conceptual framework______________________________________ 134 8. Belgian farmers' willingness to participate in agri-environmental measures ____________________________________________ 137 1. Introduction___________________________________________ 137 2. Modelling farmers' participation in agri-environmental measures ________________________________________________________ 138 2.1. Economic model __________________________________________ 138 2.2. Hypotheses on farm and farmers' characteristics__________________ 142 3. Empirical findings______________________________________ 143 3.1. Data and methodology______________________________________ 143 3.2. Empiricalresults __________________________________________ 145 3.3. Econometric model ________________________________________ 147 4. Conclusions ___________________________________________ 153 9. Farmers' participation in several agri-environmental schemes: a European perspective __________________________________ 155 1. Introduction___________________________________________ 155 x 2. Modelling farmers' behaviour____________________________ 156 3. Data _________________________________________________ 157 4. Empirical results_______________________________________ 158 4.1. General results____________________________________________ 158 4.2. Marginal effects of explanatory variables_______________________ 160 5. Conclusions ___________________________________________ 162 PART IV: General conclusions 10. Conclusions and policy recommendations_______________ 171 1. Need for policy intervention______________________________ 171 2. The analytical framework reconsidered____________________ 172 3. Policy recommendations_________________________________ 174 3.1. A general remark__________________________________________ 174 3.2. Market creation ___________________________________________ 175 3.3. Policy options ____________________________________________ 176 3.4. Environmental co-operation _________________________________ 181 3.5. Concluding comments______________________________________ 181 Annex 1 __________________________________________________ 183 Annex 2 __________________________________________________ 184 Annex 3 __________________________________________________ 185 References ________________________________________________ 187
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