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Incentivising Participation and Spatial Coordination in Payment for Ecosystem Service Schemes:Forest Disease Control Programs in Finland

Author

Listed:
  • Oleg Sheremet

    (Mathematics, University of Stirling)

  • Enni Ruokamo

    (Oulu Business School, University of Oulu)

  • Artti Juutinen

    (NAtural Resources Institute Finland)

  • Rauli Svento

    (Oulu Business School, University of Oulu)

  • Nick Hanley

    (School of Geography and Sustainable Development, University of St. Andrews)

Abstract
This paper considers the problem of designing PES-type contracts to encourage participation and spatial coordination amongst private forest owners in Finland. The aim of the policy is to increase efforts to mitigate risks from invasive forest pests and diseases. Such control actions yield spill-over benefits to other landowners and to wider society, meaning that the level of privately-optimal disease control is likely to be less than the socially-optimal level. The policy designer may wish to encourage spatial coordination in the uptake of such PES-type contracts, as spatial coordination delivers an increase in the effectiveness of control measures on disease risks. We conducted a choice experiment with private forest owners in Finland in October 2016. The study elicited the preferences of woodland owners with respect to the design of forest disease control contracts,and gauged their willingness to cooperate with neighbouring forest owners within the framework of such programs.

Suggested Citation

  • Oleg Sheremet & Enni Ruokamo & Artti Juutinen & Rauli Svento & Nick Hanley, 2017. "Incentivising Participation and Spatial Coordination in Payment for Ecosystem Service Schemes:Forest Disease Control Programs in Finland," Discussion Papers in Environment and Development Economics 2017-13, University of St. Andrews, School of Geography and Sustainable Development.
    • Handle: RePEc:sss:wpaper:2017-13
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    More about this item

    Keywords

    Choice Experiment; Payments for Ecosystem Services; Forest Pests and Diseases; Disease Control Measures; Spatial Coordination;
    All these keywords.

    JEL classification:

    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
    • Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics

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