UKNEE Autumn Webinar Series - 3 - Improving the design of PES and agri-environment schemes: some new results

Presenter: Professor Nick Hanley, University of Glasgow

With Brexit, the UK government has the opportunity to change agri-environmental scheme design in a way which both enhances its environmental delivery, and which improves its cost-effectiveness. We argue that research by economists is helpful in thinking about what these kinds of enhancements might look like.

In this webinar, I look at some ideas which economists have been exploring recently in order to enhance the design of PES schemes, focussing in particular on “agri-environment” policies such as those run under Pillar 2 of the CAP and its forthcoming replacements in the UK.

The three specific ideas which I focus on are

• paying for outcomes (results) rather than paying for management actions;

• incentivising spatial coordination amongst farmers and

• using non-monetary incentives to increase participation.

We tested these 3 ideas out using farmers and students in experimental sessions in Japan, Uruguay and the US and I’ll be sharing some of the results and lessons.

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