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Barreiro-Hurlé, Jesús; Espinosa-Goded, Maria; Dupraz, Pierre. |
Current EU legislation states that premiums for agri-environmental schemes must be calculated based on forgone profit and additional costs. This approach has been implemented for the last decades without much success in farmer uptake, a situation that might even worsen as the 20% additional payment as incentive for participation has been excluded in the new EU Rural Development Framework 2007-2013. This paper tries to explain why supply side estimated premiums might not suffice to assure farm profitability investigating the role that fixed costs have on adoption. A farm profit maximizing model is proposed where fixed and transaction costs are split from variations in marginal profit. This model is then developed to identify the potential barriers to... |
Tipo: Conference Paper or Presentation |
Palavras-chave: Agri-environmental schemes; Fixed costs; Adoption; Environmental Economics and Policy. |
Ano: 2008 |
URL: http://purl.umn.edu/43606 |
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