Demand for non-commodities outputs from agricultural activities: The case of mountain olive groves

Abstract

Agricultural multifunctionality is the recognition of the joint exercise of economic, environmental and social functions by this sector. In order to make this concept operative for the design of public policies, it is necessary to estimate the social demand for such functions. The main objective of this article is to present an empirical application in this line. For this purpose we have taken the agricultural system of mountain olive groves in Andalusia (Southern Spain) at risk of abandonment after the decoupling of the EU subsidies as a case study. The economic valuation technique used is the Choice Experiment. According to the results, there is a different contribution of each attribute to the improvement of the Society level of utility. Thus, and taking into account its WTP for each attribute, keeping rural population in their villages and fighting soil erosion seem to be the most valued functions by Andalusian citizens. It follows the improvement of the visual quality of the rural landscapes and the reduction of food residuals. Finally, although the results suggest a significant demand for the different functions, this demand is heterogeneous, depending on the socio-economic characteristics of the individuals.