Implementing result-based agri-environmental payments by means of modelling

TL;DR

This paper introduces MIRBAP, a novel model-informed approach to result-based agri-environmental payments that reduces measurement costs and payment uncertainty by using modelling instead of direct result measurement.

Contribution

It proposes MIRBAP, a new payment scheme combining advantages of result- and action-based schemes, addressing measurement costs and enabling management of multiple policy objectives.

Findings

MIRBAP unites benefits of result- and action-based schemes.

It offers potential to manage trade-offs among policy objectives.

MIRBAP supports long-term environmental management.

Abstract

From a theoretical point of view, result-based agri-environmental payments are clearly preferable to action-based payments. However, they suffer from two major practical disadvantages: costs of measuring the results and payment uncertainty for the participating farmers. In this paper, we propose an alternative design to overcome these two disadvantages by means of modelling (instead of measuring) the results. We describe the concept of model-informed result-based agri-environmental payments (MIRBAP), including a hypothetical example of payments for the protection and enhancement of soil functions. We offer a comprehensive discussion of the relative advantages and disadvantages of MIRBAP, showing that it not only unites most of the advantages of result-based and action-based schemes, but also adds two new advantages: the potential to address trade-offs among multiple policy objectives and management for long-term environmental effects. We argue that MIRBAP would be a valuable addition to the agri-environmental policy toolbox and a reflection of recent advancements in agri-environmental modelling.