Key points are not available for this paper at this time.
Abstract This study applies a two-stage analysis of discrete–continuous supply of environmental services, based on an extended discrete choice experiment (DCE) with 68 farmers in Northern Germany. The estimation strategy combined a multinomial Heckman model and an OLS regression. We extend the literature by feeding the estimation results into a contract optimisation model for a stylised conservation scheme. The optimised contract differed significantly from the standard contract, which offered farmers a payment equal to the average cost of service provision. The standard contract yielded only 64 per cent of the environmental service of the optimised contract for the same budget outlay.
Latacz‐Lohmann et al. (Wed,) studied this question.