Uni-Bayreuth grafik-uni-bayreuth



Estimating the economic tradeoffs between agricultural production and water quality for Soyang watershed


From 07/2010 to 02/2018

Principal Investigator: Thomas Koellner
Staff: Saem Lee
Grant: IRTG 1565 WP IV TERRECO - Complex Terrain and Ecological Heterogeneity - Evaluating ecosystem services in production versus water yield and water quality in mountainous landscapes

Abstract 2011: The purpose of this research is to test whether there are significant differences among farmers implementing conventional agriculture in comparison to environmentally friendly agriculture with respect to economic investments and gains, and in their effectiveness in providing ecosystem services. This study will evaluate the economics of environmentally friendly agriculture versus conventional farming in 4 counties located within Soyang Watershed. This study will evaluate factors which play a role in the adoption of environmental friendly farming such as  economic risk and private economic gains. Also, the study will establish preferences of consumers with respect to agricultural products, whether they are influenced by quality, health and safety gains in the consumption of environmental friendly agricultural products. It is expected that the integrated results of multi-attribute preference methodologies make it possible to compare farmers and consumers’ behavior. 

Key words: benefit-cost, stated preference, willingness to pay, willingness to accept

 project description in detail from 2011 TERRECO Science Conference GAP 


Abstract 2013: Sustainable management of ecosystem services under global climate change is a key issue for decision-makers. Specifically, the inherent trade-off between food production and ecosystem services like sediment retention and water quality regulation may lead to conflicts between farmers and consumers. Thus, the research objectives are (1) to evaluate economic and environmental efficiencies associated with farming techniques (conventional versus environmental friendly farming) and (2) to identify economic trade-offs between farmer’s income/consumer’s food costs as well as ecosystem services. We selected choice modeling and contingent valuation, both stated preference techniques, to address our research objectives. In the farmer survey 224 individuals, who directly have influence on ecosystem services in Soyang Watershed, were interviewed in Yanggu, Inje, and Hongcheon Counties. The preliminary results reveal farmers’ perceptions of ecosystem services, willingness to accept changing to environmental friendly agriculture if compensated for 5 years and economic trade-offs between farmer’s income and ecosystem services. The complementary consumer survey is planned for beginning of 2013. Knowledge about farmers’ and consumers’ preferences for ecosystem services versus income and costs is an important input for the ENVI-ECON concept of TERRECO. Specifically, the results from the surveys will be used in cohort 2 studies to derive land use scenarios. Overall, our research provides crucial information to support Korean policy-making for agricultural and water management.


Key words: Decision-making, economic trade-offs, willingness to pay, willingness to accept  


Poster January 2013

last modified 2018-03-22