Title Exploring the commodification of biodiversity using olive oil producers\' willingness to accept
Authors SALAZAR ORDÓÑEZ, MELANIA, Rodriguez-Entrena, Macario , Villanueva, Anastasio J.
External publication No
Means Land Use Pol.
Scope Article
Nature Científica
JCR Quartile 1
SJR Quartile 1
Area International
Publication date 01/08/2021
ISI 000663550200004
DOI 10.1016/j.lusepol.2019.104348
Abstract There is a growing need for innovative new instruments to complement the current schemes aimed at improving farmland biodiversity. Some of the most promising innovations include market-based instruments relying on what is known as the commodification of biodiversity. This paper aims to estimate the compensation farmers would need to receive in order to adopt environmentally-friendly practices aimed at incorporating the provision of biodiversity into food production. The analysis relies on a discrete choice experiment (DCE) that estimates farmers\' willingness to accept (WTA), both in terms of harvest (i.e. euro/kg of output) and area (i.e. euro/ha), for improving the levels of bird biodiversity in olive groves. The analysis focuses on a case study of mountain olive growers in Andalusia (Southern Spain). Results show that the higher the level of provision of farmland biodiversity, the higher the farmers\' WTA. Harvest-based estimates range from 0.185 euro/kg to 1.395 euro/kg olive oil for levels of provision of 13 and 30 bird-species/farm, respectively, meaning 58.5 euro/ha to 440.0 euro/ha in area-based terms. High-yield farms show higher WTA values compared to low-yield farms, with the exception of harvest based estimates for the least stringent scenario. Taking into account the average farm-gate prices of both regular and organic extra virgin olive oil, the results suggest a great potential for the commodification of biodiversity through olive oil markets. However, further research is needed on the implementation of hybrid governance solutions including market-based and incentive-based instruments.
Keywords Market-based instruments; Agri-environmental schemes; Ecosystem services; Organic farming; Olive groves; Choice experiment
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