Are citizens willing to pay for the ecosystem services supported by Common Agricultural Policy? A non-market valuation by choice experiment

Abstract

Public attention to the impact of human activities on the environment is growing over time across several sectors, particularly agri-food. In Europe, the agricultural sector's focus on sustainability has influenced EU policies for at least 40 years. The Common Agricultural Policy (CAP) has for years been proposing tools, commitments, and incentives to mitigate the over-use of natural resources and to increase or maintain the flow of ecosystem services (ES) provide by agro-ecosystems. In the latest reform (23-27), the EU strengthens the commitments required of farmers for environmental issues. The role of farmers in natural capital management and ES provision seems to be recognized, EU subsidies for farmers seem to be more related to sustainability and well-being concerns of European citizen. However, it is necessary to understand whether society recognizes these benefits and legitimizes this transfer of public money for these purposes. This study aims to evaluate non-farmers citizen preference through a Choice Experiment for the potential higher flows of ES provided by three of the reformulated and new Good Agricultural Environmental Conditions - GAEC. The case study developed in Italy collected data from 185 citizens of the Po Valley, one of the most intensely cultivated areas in Europe. Analyses demonstrated how society recognizes the benefits provided by more sustainable agricultural systems, showing a preference for higher ES flows. The results show that there is a hypothetical value recognized by society for ES attributable to new GAECs that will be implemented by CAP farmers. In the case study, this value is higher than what farmers currently receive for general environmental purposes through direct payment for the management of arable land. Analysis it could justify that efforts required by the new CAP reform (23-27) to the farmers to achieve sustainable agricultural systems could be compensate and supported by positive citizens valuation.

Keywords: Biodiversity; Compensating surplus; Environmental policy; Good agricultural environmental conditions; Sustainability; Willingness to pay.