The project addresses a key question in agri-environmental policy design: should farmers be paid for results (more biodiversity) or for their actions (fencing, stocking restrictions).
The project develops mathematical models to predict how farmers decide when selecting alternative conservation contracts. Some farmers select contracts that require them to put a high level of resources into conservation, others may select lower level contracts. This approach to designing contracts allows for diversity amongst farmers as well as the fact that the regulator cannot observe the farmers costs or actions directly.
- Professor Nick Hanley, St Andrew’s University
- Andrew Moxey, Scottish Rural College and Pareto Consulting