Demand and supply of agricultural ES: towards benefit-based policy / European Review of Agricultural Economics

Maa- ja elintarviketalouden tutkimusryhmä
1 elokuu 2020

  • Annika Tienhaara, Emmi Haltia, Eija Pouta, Kyösti Arovuori, Ioanna Grammatikopoulou, Antti Miettinen, Kauko Koikkalainen, Heini Ahtiainen, Janne Artell, Demand and supply of agricultural ES: towards benefit-based policy, European Review of Agricultural Economics, Volume 47, Issue 3, July 2020, Pages 1223–1249


    In order to integrate ecosystem services (ES) in designing agri-environmental policy, we investigated both the demand for, and supply of, ES from agricultural environments in Finland. Using the discrete choice experiment method, we measured citizens’ willingness to pay (WTP) for four different ES and analysed farmers’ compensation request (willingness to accept [WTA]) for producing these services. Biodiversity and water quality gathered the highest WTA of farmers, but also the highest WTP of citizens. Overall, the average WTA exceeded the WTP for almost all attributes and levels, but 20–27 per cent of farmers were willing to produce the ES with the compensation lower than citizens’ WTP.