Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/73209 
Year of Publication: 
2005
Series/Report no.: 
Working Paper No. 0511
Publisher: 
Johannes Kepler University of Linz, Department of Economics, Linz
Abstract: 
This paper deals with a cross section analysis of local compensation payments to farmers for their provision of landscape amenities in alpine tourist communities. These payments can be interpreted as the outcomes of Coasian negotiations. Based on Austrian data we empirically identify the underlying determinants of the negotiating process. The probability for a positive negotiation outcome depends on politico-economic factors such as municipal revenues per resident and the share of votes for distinct parties in parliamentary elections. Whereas benefits associated with landscape amenities also play an important role transaction costs of bargaining are of minor relevance. If the variety of the countryside seems to be endangered tourist communities start compensating their farmers for landscape-enhancing activities. Local subsidy schemes supplement European Union and national policies in support of rural areas as they internalize positive agricultural externalities.
Subjects: 
Coase Theorem
Coasian payments
external benefits of agriculture
landscape-enhancing agricultural services
JEL: 
Q1
Q26
D62
Document Type: 
Working Paper

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