Paper now online: Evaluation of cost-effectiveness of organic farming support as an agri-environmental measure at Swiss agricultural sector level

New paper published in Land Use Policy

Evaluation of cost-effectiveness of organic farming support as an agri-environmental measure at Swiss agricultural sector level

New paper, based on Christian Schader's PhD is now available on Land Use Policy

Schader, Lampkin, Christie, Nemecek, Gaillard and Stolze (2013), Evaluation of cost-effectiveness of organic farming support as an agri-environmental measure at Swiss agricultural sector level. Land Use Policy 31, 196-208.

Abstract

The economic efficiency of financial support of organic farming has been questioned by economists and policy makers. However, little empirical research has been done in order to evaluate the economic performance of these payments. Thus, the aim of this paper is to calculate the cost-effectiveness of organic farming support in achieving environmental policy targets compared to other agri-environmental measures.

The cost-effectiveness of agri-environmental measures can be understood as a function of policy uptake, environmental effects, and public expenditure. Taking the Swiss agricultural sector as an empirical case study, cost-effectiveness of organic farming support and other single agri-environmental measures was calculated. For this purpose, the sector-representative PMP model FARMIS was extended by three modules encompassing: (a) life cycle assessments for fossil energy use, biodiversity and eutrophication according to the SALCA methodology, (b) public expenditure, including policy-related transaction costs, and (c) uptake of agri-environmental measures.

The calculations revealed a slightly higher policy cost with organic farming support of 14 CHF/ha for a 1% average improvement in the environmental indicators, compared to a combination of three single agri-environmental measures (11 CHF/ha), including both extensification of arable land and meadows. In view of an average public expenditure on agriculture of 2.5 kCHF/ha in Switzerland, these differences can be considered as marginal. Sensitivity analyses confirm that the cost-effectiveness of organic farming support is very similar to combined agri-environmental measures. Furthermore, the model reveals that the cost-effectiveness of specific agri-environmental measures is higher when implemented on organic farms rather than on non-organic farms.

For more details, goto: http://www.sciencedirect.com/science/article/pii/S0264837712001196 

Two papers in Ecosystem Services is now published online

Two of my papers that are being published in the first edition of Ecosystem Service journal are now available to view online:

Christie and Rayment (2012) An economic assessment of the ecosystem service benefits derived from the SSSI biodiversity conservation policy in England and Wales. Ecosystem Services (In Press)
http://dx.doi.org/10.1016/j.ecoser.2012.07.004


de Groot et al (2012). Global estimates of the value of ecosystems and their services in monetary units. Ecosystem Services (In Press)
http://dx.doi.org/10.1016/j.ecoser.2012.07.005  

Land Use Policy paper on cost effectivess of organic farming in Switzerland

The following paper with one of my sucessful PhD students, Christian Schader, is now to be published. Details are below... Title: Evaluation of cost-effectiveness of organic farming support as an agri-environmental measure at Swiss agricultural sector level Authors: Christian Schader, PhD; Nic Lampkin; Michael Christie; Thomas Nemecek; Gerard Gaillard; Matthias Stolze Abstract: The economic efficiency of financial support of organic farming has been questioned by economists and policy makers. However, little empirical research has been done in order to evaluate the economic performance of these payments. Thus, the aim of this paper is to calculate the cost- effectiveness of organic farming support in achieving environmental policy targets compared to other agri-environmental measures. The cost-effectiveness of agri-environmental measures can be understood as a function of policy uptake, environmental effects, and public expenditure. Taking the Swiss agricultural sector as an empirical case study, cost-effectiveness of organic farming support and other single agri- environmental measures was calculated. For this purpose, the sector-representative PMP model FARMIS was extended by three modules encompassing a) life cycle assessments for fossil energy use, biodiversity and eutrophication according to the SALCA methodology, b) public expenditure, including policy-related transaction costs, and c) uptake of agri-environmental measures. The calculations revealed a slightly higher policy cost with organic farming support of 14 CHF/ha for a 1 % average improvement in the environmental indicators, compared to a combination of three single agri-environmental measures (11 CHF/ha), including both extensification of arable land and meadows. In view of an average public expenditure on agriculture of 2.5 kCHF per ha in Switzerland, these differences can be considered as marginal. Sensitivity analyses confirm that the cost-effectiveness of organic farming support is very similar to combined agri-environmental measures. Furthermore, the model reveals that the cost-effectiveness of specific agri-environmental measures is higher when implemented on organic farms rather than on non-organic farms.

VNN updates

VNN has just published updates talks by the 10 NERC Valuing Nature Network project leaders, which were presented at the VNN meeting on the 26th April 2012. You can find my update of the BRIDGE project there also. See VNN update meeting 26 April 2012 website for more details.

Local Nature Partnerships

In its Natural Environment White Paper, the UK Government recognised that there was a need for local areas to work in a joined up and strategic way to help manage the natural environment to produce multiple benefits for people, the economy and the environment. To achieve this ambition, the White Paper has proposed the establishment of Local Nature Partnerships (LNPs). The vision is that LNP's will comprise a broad range of local organisations, businesses and people with the credibility to work with and influence other local strategic decision makers. The LNPs will thus help their local area to manage the natural environment as a system and to embed its value in local decisions for the benefit of nature, people and the economy. See the Defra LNP website for more details.

Over the past few weeks I have been involved in the setting up of two LNPs:

• Shropshire, Telford & Wrekin LNP

• Staffordshire LNP

My input into these start up meetings was to provide a theoretical overview of the ecosystem service benefits that might be provided by nature, and thus help to demonstrate why it is important for local people to work together to protect their natural environment. Could I wish both LNP partnerships the best wishes for their projects, and would encourage other local authorities to also submit their applications into Defra to form such partnerships.


Mike