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Abstract: Biodiversity, cultural heritage, and scenery are major public goods produced in the agricultural landscape. Theoretically, Indicator-based Agri-Environmental Payments have the properties of providing socially efficient production. A system of seven composite state indicators, expressing the public goods of the respective fields or field elements, was developed and tested to assess if the model worked in practical policy implementation. The evaluation indicated a more efficient resource allocation, better dynamic incentives and lower transaction costs, compared to the current Swedish payment programs. A disadvantage is that such value-differentiated payments do not comply with tailoring and with present WTO- or CAP-regulations of cost-based payments. [Copyright &y& Elsevier]

This paper presents a methodology for developing state indicators, reflecting the provision of environmental public goods from agricultural landscapes. The methodology involves a structured use of meta-criteria and criteria for developing indicator variables and indicators, along with a coherent set of indicators. These indicators are aimed at providing a basis for determining agri-environmental payments to farmers. They are estimated at the object level, that is, per field or field element, so payments can be set that lead to an efficient resource allocation, structure of incentives and production. We find that, according to the criteria assessments for the Swedish agri-environmental situation, it is best to use a set of seven composite indicators on arable fields, permanent grasslands, linear elements, point elements, forest edges, bio-rich trees and relics. By estimating the indicators in two case study areas, we show that environmental services vary considerably between objects, indicating that value-differentiated payments may work as an efficient instrument in practical policy making. [ABSTRACT FROM AUTHOR]

The willingness to pay (WTP) for different types of elements and other environmental qualities of the agricultural landscape were investigated by a choice experiment study. To get value measures of a set of attributes as policy relevant as possible, the WTP for 28 levels of 12 attributes was estimated. Two survey versions concerned permanent grassland and two concerned field elements of cultivated land. A sample of 8000 randomly selected Swedish inhabitants was used. The estimated values vary significantly between linear field elements and grassland types, where stone walls and oak-wooded pastures, respectively have the highest marginal WTP. Highly valued environmental qualities are biodiversity, visibility and absence of brushwood. Reference points were included to capture preference heterogeneity. The study cannot reject that respondents may value environmental service levels based on their reference points. [ABSTRACT FROM AUTHOR]