Agricultural landscape cultivation in Austria: An application of the CVM

Abstract

The purpose of this paper is to evaluate economic benefits associated with agricultural landscape-cultivating services provided as an input on behalf of the tourism sector in Austria. Applying the Contingent Valuation Method (CVM) 4600 tourists spending vacations in Austria were asked about their willingness to pay for these services in the summer of 1991. The mean and median was 9.20 ATS and 3.50 ATS per person per day, however, the values varied according to the tourists ´ nationality. Even though the study reveals a considerable aggregate WTP, the amount would probably not suffice to maintain farmers in mountainous regions. Various conclusions for agricultural policy can be drawn concerning direct compensation to farmers for the provision of non-market goods.