Volumetric Choice Experiments (VCE) offer a novel approach to studying individual behavior, traditionally explored through Discrete Choice Experiments. This study assesses the efficacy of VCE in understanding farmers' preferences regarding new results-based and practice-based agri-environmental contracts, using a comprehensive international stated preference survey. Recognizing that farmers often act as households maximizing utility rather than purely profit-driven producers, we provide justification for applying a utility-based framework in this context. The subsidy-driven nature of agri-environmental contracts poses a challenge for the use of multiple discrete-continuous choice models suited for VCE data. Conventionally, these models utilize an income-based budget equation, which would not be binding given the willingness-to-accept format of the experiment. To operationalize our model, we adopt a land-based budget equation, facilitating the development of a novel compensating variation measure for welfare analysis. Our findings reveal insightful contrasts between VCE-derived data and traditional DCE results, highlighting the complexities encountered and the comparability of outcomes. By delving into the distinct attributes of VCE and justifying the utility-based approach for farmers, this research not only bridges a critical gap in the literature but also enhances our understanding of farmer behavior, with significant implications for the design and implementation of future agri-environmental policies.
Ensuring that farmers' ex ante preferences are accounted for is crucial for the design of effective agri-environmental contracts. We present a systematic review of 127 discrete choice experiment (DCE) studies of farmers' preferences with respect to agri-environmental contracts. DCE studies evaluate two central features of farmers' behaviour: (1) their willingness to accept land use prescriptions, such as fertiliser use, application of pesticides, restrictions on cropping, livestock management, integration of silvopasture, maintaining soil health or water use restrictions; and (2) their responses to variations in incentive and commitment criteria, such as reward schemes, monitoring regimes, technical assistance, flexibility of agreements, administrative burden and collaborative implementation. Our analysis considers how these different elements are interlinked and applied in experiments to simulate farmers' decision-making processes. We examine recent methodological improvements in explaining farmer behaviour, including the accommodation of preference heterogeneity, the combining of discrete (enrolment) and continuous decisions, and the incorporation of farmers' sense of identity. DCEs have been applied for the ex ante analysis of different policy instruments to inform the European Common Agricultural Policy and agri-environmental schemes outside the EU. The results of this systematic review may be useful in informing the future design of such agri-environmental programmes. The database underpinning this systematic literature review may help peer scientists to (a) compare, validate and triangulate their own findings with respect to other experimental approaches, (b) use previous willingness-to-accept (WTA) measures as priors for their own study design, and (c) identify research gaps regarding farmers' preferences for agri-environmental measures.
Abstract Objective The objective of this article is to examine how people value two different attributes of Value of Life Year (VOLY): life expectancy and the quality of life. The results of the first VOLY estimations conducted in Poland are discussed and compared with Polish cost-effectiveness thresholds for medical treatments in the period 2008–2020. Methodology The Discrete Choice Experiment (DCE) method was used to value two attributes of VOLY: increase in life expectancy and improvement in the quality of life. Main findings The VOLY research was conducted in two populations: general and dialysis. Depending on their current health status, people value increased life expectancy and improvement in health quality differently. In light of these results, the VOLY should be differentiated. Also in the Quality Adjusted Life Year (QALY) indicator, the weights of the attributes of length and quality of life should be varied according to different states of health. A uniform cost-effectiveness threshold is not justified from the perspective of stated preferences. Cost-effectiveness thresholds based on demand-side values should be differentiated. Current Polish cost-effectiveness thresholds are overestimated compared to valuations based on stated preferences. Contributions The article presents the first estimations of two attributes of VOLY: life expectancy and the quality of life, carried out in Poland.
This paper provides a key element for the calculation of the damage costs of air pollution, namely the valuation of mortality, important because premature mortality makes by far the largest contribution. Whereas several studies have tried to quantify the cost of air pollution mortality by multiplying a number of deaths by the ‘value of prevented fatality’ (also known as ‘value of statistical life’), we explain why such an approach is not correct and why one needs to evaluate the change in life expectancy due to air pollution. Therefore, an estimate for the monetary value of a life year (VOLY) is needed. The most appropriate method for determining VOLY is contingent valuation (CV). To determine VOLY for the EU, we have conducted a CV survey in 9 European countries: France, Spain, UK, Denmark, Germany, Switzerland, Czech Republic, Hungary, and Poland with a total sample size of 1463 persons. Based on the results from this 9-country CV survey we recommend a VOLY estimate of 40,000 € for cost–benefit analysis of air pollution policies for the European Union. As for confidence intervals, we argue that VOLY is at least 25,000 € and at the most 100,000 €.
The article touches the problem how to valuate such specific goods as human health and life. The study provides the results of the first Polish valuation of life year gained (VOLY) in the context of air pollution on the level of 32,0–70,4 thousand PLN. Presented contingent valuation method survey was conducted within European Commission NEEDS project. Common questionnaire was implemented in 8 European countries: Poland, the Czech Republic, Hungary, France, the United Kingdom, Switzerland, Spain, Denmark. Poland’s research was conducted by Warsaw Ecological Economics Centre in 2004–2006. The monetary indicators can be used in decisive processes in health care and environmental protection sectors. Taking into account first Polish experiences in valuation of life year and trends in development of valuation methods, some directions for future research in this field have been outlined.
The paper reports research in benefit transfer validity between Norway and two New Member States of EU-Poland and the Czech Republic. Based on the original eutrophication contingent valuation study conducted in Norway in 1994, repeated later in Norway (1997) and Germany (2000), two studies were conducted in Poland and the Czech Republic in 2005 in which we ask residents for willingness-to-pay for a hypothetical improvement of water quality in a lake which is strongly euthrophicated and therefore not usable for all recreational activities. The studies were designed in a way that would match the Norwegian original as closely as possible, with regard to site selection, scenario, payment vehicle and even the questionnaire design. The experience gained and the data collected serves to test for possibilities for future BT from Western European countries to new EU Member States as well as between two new member countries. Naive single benefit transfer yields the largest error rates. Transfers adjusted by purchasing power decrease these errors, however, they still remain very large. The error rates are more reduced by transfer benefit function and particularly after adjustments by income elasticities. Following our best transfer, the lowest error remains as high as 30%. Error rates for transferring benefits from Norwegian 1997-study which is just comparable with the Czech and Polish one from even after purchasing power adjustments remain. The paper summarizes the process of collecting data and results, analyzes main differences between the original and two latter studies as well as between the new studies. Finally, value transfer and function transfer are conducted and followed by validity tests.