Periurban Agriculture: Do the Current EU Agri-Environmental Policy Programmes Fit with it?

27 Pages Posted: 29 May 2018

See all articles by Linda Arata

Linda Arata

Catholic University of the Sacred Heart of Milan - Catholic University of the Sacred Heart of Piacenza

Gianni Guastella

Fondazione Eni Enrico Mattei (FEEM)

Stefano Pareglio

Catholic University of the Sacred Heart of Milan

Riccardo Scarpa

University of Waikato - Management School

Paolo Sckokai

Universita Cattolica, Piacenza

Date Written: May 28, 2018

Abstract

In the European Union (EU) periurban agriculture is under the same agri-environmental policy regime designed for general agriculture. We argue that the specific needs of periurban agriculture may justify ad hoc agri-environmental policy measures. We present results from a Choice Experiment (CE) performed on a sample of 600 people living in the municipality of Milan, which was designed to assess the willingness to pay (WTP) for ecological benefits generated by four agri-environmental practices implementable in the periurban area and already included in the Rural Development Programmes of the Lombardy region. Results suggest that a large population share is willing to pay to support an increase in the use of the agricultural practices studied with an average WTP ranging between 5.6 to 16.3 euro/person/year, according to the type of practice. These results are in contrast with their current low level of adoption. The sub-optimal uptake rate is likely due to an insufficient per hectare compensating payment, which is too low to cover the income foregone consequent to the adoption of sustainable agriculture measures in this area. The mismatch between the low uptake rate and the high social benefits generated by the four agri-environmental agricultural practices sheds light on the need to design agri-environmental policy programmes specifically targeted to periurban areas, where the costs of compliance with AEMs are high and the social benefits of their adoption are large.

Keywords: Periurban Agriculture, Agri-environmental Policy, Choice Experiment, Random Parameter Logit Model, Error Component, WTP Space

JEL Classification: Q18, Q57, C35

Suggested Citation

Arata, Linda and Guastella, Gianni and Pareglio, Stefano and Scarpa, Riccardo and Sckokai, Paolo, Periurban Agriculture: Do the Current EU Agri-Environmental Policy Programmes Fit with it? (May 28, 2018). FEEM Working Paper No. 16.2018. Available at SSRN: https://ssrn.com/abstract=3185982 or http://dx.doi.org/10.2139/ssrn.3185982

Linda Arata

Catholic University of the Sacred Heart of Milan - Catholic University of the Sacred Heart of Piacenza ( email )

Via Emilia Parmense, 84
Piacenza, 29122
Italy
+39 0523 599447 (Phone)

Gianni Guastella

Fondazione Eni Enrico Mattei (FEEM) ( email )

C.so Magenta 63
Milano, 20123
Italy

Stefano Pareglio (Contact Author)

Catholic University of the Sacred Heart of Milan ( email )

Milan, Milan
Italy

Riccardo Scarpa

University of Waikato - Management School ( email )

Hamilton
New Zealand

Paolo Sckokai

Universita Cattolica, Piacenza ( email )

Via Emilia Parmense 84
Piacenza, Piacenza 29122
Italy

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