The economic value of

traditional landscapes

Tiziano Tempesta

Padua University

WORKING THE LANDSCAPES

terraces and dry-stone walls between identity and values

Albiano (TN) – May 4, 2013

By means of Decree n. 17070 of 19/11/2012 the MIPAF

(Ministry of Agriculture and Forest Policy) established the

“National Observatory for rural landscape, agricultural

practices, and traditional knowledge”

According to the Decree (art. 2) the expression “Rural

Traditional Landscape” indicates either parts and parcels

of a territory classified as rural, or linear/specific elements

that, while still subject to an evolutionary process, hold

evident traces of their origin and history, keeping a role in

society and the economy.

From a technical-economic standpoint, traditional

landscape environments are generally characterized by the

presence of high labour intensity and a lower degree of

capital intensit. Energy inputs external to the enterprise are

in general also low.

Consequently:

-Labour is characterized by low productivity and

remuneration.

- Production costs are high and output low.

- Enterprises employing traditional techniques do not

achieve competitiveness on the market, and are often

forced to abandon activity or convert to different production

techniques (often with consequences for the landscape).

Lower or no possibility to recourse to external energy

sources forces enterprises to re-organize their overall

space management and seek a greater degree of

adaptation to the external natural environment.

Traditional materials are utilized in manufacture.

A benefit comes to traditional landscapes. Particularly from

an aestethic standpoint.

Traditional landscapes preservation can only be assured if:

- Society acknowledges their intrinsic cultural value, and

agrees to devote financial resources to their maintenance.

- Consumers are willing to pay a higher price for local

goods (agricultural products, local services in the tourism

sector)

Research on the social value of traditional

landscapes’ preservation

In Italy, several studies have been conducted which aimed

to quantify, in financial terms, the social benefits deriving

from traditional landscapes’ maintenance and

preservation.

The Contingent Valuation survey-based technique has

been employed, as more recently has the Discrete Choice

Experiments method.

The valuation of social benefits is typically determined by

the sum of money consumers’ are willing to pay not to see

the landscapes damaged.

Results obtained through Contingent Valuation

Authors and Year Area Interviewees Landscape’s

characteristics

Average utility (euro

2011)

Per family Per ha

Tempesta, 1998

Plain between the Isonzo and

Tagliamento rivers (UD) Local residents Grassland plains 3.2 533

Tempesta, 1998

Plain between the Isonzo and

Tagliamento rivers (UD) Local residents Grasslands, meadows 6.3 3466

Marangon e Tempesta, 2001 Collio Area (Friuli Venezia Giulia) Local residents Traditional vinyards 88.7 374

Marangon e Tempesta, 2001 Colli Orientali (Friuli Venezia Giulia) Local residents traditional vinyards 138.2 700

Tempesta e Thiene, 2004 Cortina d'Ampezzo (BL) Tourists Mountain meadows 5.0 854

Signorello et al., 2001 Etna Area (CT) Local residents

Traditional pistachio

cultivations 3.2 308

Torquati e Musotti, 2007 Hills and Mountains in 'Umbria Residents in the Region

Pastures, meadows,

hedges, olive-trees, dry-

stone walls 52.9 1904

Antonelli et al., 2006 Hills and Mountains in 'Umbria Residents in the Region

Pastures, meadows,

hedges, dry-stone walls 83.6 4480

On average, utilities per hectar are higher than Regional

benefits.

Results obtained through Discrete Choice Experiments

Collio Area research study (Friuli Venezia Giulia)

Features taken into consideration:

-% Surface subjected to excavation

-% Surface occupied by forests

-% Surface occupied by wooden vinyards

- Tax increases to finance maintenance operations

200 interviewees on the study area

Variable coefficiente sign. Coeff.

% bosco 43.5 0.000

% bosco al quadrato -1.0 0.000

% pali in legno 7.2 0.000

% pali in legno al quadrato 0.0 0.000

% sbancamenti 10.4 0.000

% sbancamenti al quadrato -2.3 0.000

costo -2.7 0.000

Statistical Model

(MNL)

Estimation of

surfaces

maximizing

social utility

% bosco WTP % pali in legno WTP % sbacamenti WTP

2.5 38.33 40 81.6 1 3.0

5.0 72.14 45 88.2 2 4.3

7.5 101.42 50 94.0 3 3.9

10.0 126.17 55 98.9 4 1.8

12.5 146.39 60 103.1 5 -2.0

15.0 162.09 65 106.4 6 -7.6

17.5 173.26 70 109.0 7 -14.9

20.0 179.90 75 110.7 8 -23.8

22.5 182.01 80 111.6 9 -34.5

25.0 179.60 85 111.8 10 -46.9

27.5 172.66 90 111.1 11 -61.0

30.0 161.19 95 109.6 12 -76.8

32.5 145.20 100 107.3 13 -94.4

Estimation of social benefits related to interventions

implemented in the context of the Veneto Region PSR

2007-2013 The experimental design

Action

planned

Preservation of

mountain

pastures

Establishment of

meadows (on

a plain)

Plantation of

forests (on a

plain)

Preservation of

plain hedges

Levels of

Interventi

on

High (80.000 ha =

100%)

High(+ 6.000 ha

= +20%) High(+1600 ha)

High(49.000 ha =

100%)

Medium (50.000 ha

= 62%)

Medium (+ 3.000

ha = +10%)

Medium (+800

ha)

Medium(24.500

ha = 50%)

Low (30.000 ha =

37%) NO NO

Low(12.000 ha =

25%)

Average cost

per family

(in Veneto)

60 €

30 €

15 €

0 €

555 intervistati residenti nella regione dal 2011 al 2012

Variables Coefficient sign.t WTP per family

(euro 2012)

Constant -1.639 0.000

COST (euro per year per family) -0.024 0.000

Preserved mountain meadows and pastures: 500 kmq 1.024 0.000 42.3

Preserved mountain meadows and pastures : 800 kmq 1.404 0.000 58.0

New plain meadows established: 30 kmq 0.632 0.000 26.1

New plain meadows established : 60 kmq 1.199 0.000 49.6

New plain forests established : 8 kmq 1.050 0.000 43.4

New plain forests established : 16 kmq 0.892 0.000 36.9

Preserved plain hedges: 24500 0.354 0.000 14.6

Preserved plain hedges : 49000 0.363 0.000 15.0

Economic estimation of utility related to meadows and

pastures preservation = 1456 euro/ha

The estimated statistical model (MNL)

Researches on the relationship between landscape

and marketing of traditional regional food products

Is the area of production of traditional regional foods

products a relevant factor for consumers? Does the fact

that a product was realized locally make consumers willing

to pay more to acquire it?

What do (few) empirical studies demonstrate?

A blind-tasting experiment

Variables taken into consideration

A - WINE WUALITY: LOW – MEDIUM – HIGH

B- PRICE OF THE BOTTLE: 3 EURO; 5 EURO; 7 EURO

C - LANDSCAPE’S CHARACTERISTICS

decaying monotonous

well-kempt evocative

Area of Study: Oriental

Veneto

Methodology: conjoint

analysis

Number of Interviewees:

224

N. of tasting sessions: 5

N. Of wines tasted per

session: 4

Wine is perceived as being of a higher quality when it is

mentally associated to a better-looking natural environment

0.16

0.36

-0.27-0.24

0.140.26

-0.40

0.170.08

-0.24

-0.8

-0.6

-0.4

-0.2

0

0.2

0.4

0.6

0.8

low

med

ium

high 3

€5

€8

€

blem

ishing

feat

ure

mon

oton

ous

well p

rese

rved

evoc

ative

Pa

rtia

l p

refe

ren

ce

Wine Price Landscape

Results of three distinct discreet-choice experiments

Area of study Product Features taken into consideration Interviewees

Prosecco DOC and DOCG

Area (Veneto)

Wine - Region of Production (DOCG, DOC, Altro)

- Usage of local grapes (prevalent, partial,

absent)

- Traceability

- Traditional landscap level of preservation

- Price

440

Friuli Venezia Giulia Wine - Region of Production (DOCG, DOC, Altro)

- Area of Production (Collio, Friuli, altro)

- Biological/Organic production

- Traditional landscape level of preservation

- Price

200

Veneto Olive Oil - Region of Production (DOP Veneto, Veneto,

Italia, Altro)

- Squeezing technique (artesanal, industrial)

- Biological/Organic production

- Traditional landscap level of preservation

- Price

476

Researches suggest that the determinant factors for

willingness to purchase food products are the area of

production, and the presence of DOC or DOP certifications.

In the case of wine, landscape contexts were also relevant

In the case of oil, landscape contexts were relevant for

aporximately 50% of the interviewees.

The importance accorded by interviewees to other factors

such as biological/organic production techniques was

inferior, as were the techniques employed throughout the

productin process.

Prices are occasionally interpreted as implicit indicators of

quality

Researches on the relationship between landscape

and tourism activities

Research carried out in Italy over the year 2011

Fonte: nostra elab. su dati RSE 2011

In the context of choosing the destination for a daily or weekend-trip, what

degree of importance does the landscape play?

N. %

It is a determinant factor 1644 42.7

I keep it into acount, but not as much as other factors such

as costs, on-site recreational activities, etc…

1121 29.1

Not much, since I repute every hypothetical destination

attractive

662 17.2

Non lo ritengo importante 176 4.6

Uncertain/ Not answering 243 6.3

Total 3846 100.0

The demand for traditional local service

Caratteristiche gradite di un'azienda agrituristica. Fonte ISMEA, 2009.

3.1

4.8

5.2

5.4

6.2

7.2

8.3

9.0

9.7

10.2

13.2

19.8

22.2

22.3

30.8

46.9

0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 45.0 50.0

Vicinanza a località turistiche

Scarso affollamento

Vicinanza a luoghi naturali protetti

Partecipazione alle attività agricole

Edifici rustici tradizionali

Comfort

Prodotti biologici

Presenza di attività agricole

Pulizia/igiene

Piatti tipici del luogo

Accoglienza

Presenza di animali

Zona circostante tranquilla

Cucina buona

Prodotti sani e genuini

Immerso nel verde

Clients’ opinions

Fattori che rendono attrattivo un agriturismo nell'opinione degli agricoltori. Fonte:INEA, 2010.

13.2

23.9

26.1

35.0

42.9

50.8

51.5

51.8

61.0

74.1

0 10 20 30 40 50 60 70 80

Possibilità di fare agricampeggio e sostare con il camper

possibilità di partecipare ad attività agricole

Attività a ridotto impatto ambientale

Attività didattiche, ricreative e culturali

Servizi Aggiuntivi

Ristorazione

Vendita diretta di prodotti aziendali

Comfort spazi e alloggi

Professionalità e qualificazione del titolare

Un contesto paesaggistico tipicamente rurale

Entrepreneurs’ opinions

What is the weight of a landscape’s quality over the

decision/predisposition to spend the night in a specific

location, during a holiday vacation?

A SWG survey’s results (research carried out on behalf of

Coldiretti and Italia Nostra in the year 2012)

How much would you be ready to pay, in order to have

the same offer-package, minus one of the following

elements?:

Component substracted from

the package

Sum consumer is still willing

to pay

Component added value

Uncontaminated environment,

with a number of noteworthy

lanscapes

54 euro 46 euro

Well-kempt cultural heritage 61 euro 39 euro

High-quality local cuisine 64 euro 36 euro

High-level hotel structures and

services

64 euro 36 euro

Wellness and sport structures

and services

71 euro 29 euro

Lively night-life and places to

go out

74 euro 26 euro

Conclusion

Traditonal landscapes generate social utilities. It is

necessary that the entire local community take their

preservation seriously (not leaving the burden on the sole

cultivators’ shoulders)

It is mandatory that the CAP to invest greater financial

resources into the preservation of traditional landscapes.

Financial contributions should be accorded in proportion to

utilities generated.

Further and deeper analysis on the topic should be

conducted. How can landscape quality contribute to a

more efficient market allocation of local traditional food

products? How can it improve the tourism/recreational

services offer?

Every local community must be granted the possibility to

recover traditional landscapes, even where significant

reafforestation has been taken place (reafforestation is a

significant form of landscape decay)

The ban to vinyards plantation in those terraced areas

where the vine was originally cultivated must be lifted.

The ban should be kept in place in plain areas.

Recovery shoul be carried out with great respect of the

landscape balance.

With regards to tourism, it is mandatory that those who

benefit directly from landscape maintenance contribute

actively to its preservation.

THANK YOU ALL FOR YOUR

ATTENTION