Opportunities for delivery of agri-environmental public goods in Bulgarian agriculture through performance-based contracts

Kristina Todorova, Dimitre Nikolov

Abstract: The provision of public goods is associated with major challenges, such as trade-offs between environmental performance and farm profitability, time interval between action and impact, and potential mismatch between scales of action and effects. As a result, several public goods in rural areas, such as water and air quality, soil erosion control, carbon capture, animal and plant biodiversity and recreation, are characterized by insufficient provision. EU agricultural policy, has partially refocused its goal on providing public goods in rural areas, taking into account today’s societal requirements. The goal of this paper is to analyze possible implementation of different environmental contract solutions to improved delivery of agri-environmental public goods (AEPGs) in Bulgaria. The results of this study aim to search for innovative mechanisms enabling to boost farmers’ provision of agri-environmental climate public goods. The novelty of this study is the exploration of improved contract
solutions and their future implementation in Bulgarian farms for fulfillment of lack of public funding and environmental deterioration. The analysis is based on the survey with 96 farmers conducted in the period January – March 2021. The result from the survey shows that Bulgarian farmers adopt to a highest extent measures regarding soil resources, where measures for water resources represent a very narrow percentage. However, future intentions of respondents show high willingness to adopt measures regarding water resources and carbon storage. From different environmental contracts analyzed in the paper, the resultbased contracts are the most well accepted among farmers and represent a future alternative for agri-environmental contracts.

Keywords: agri-environmental; contracts; public goods

Date published: 2023-08-21