BIODIV-06/10, GOV-02: Socio-economic research on market valuation and compensation of ecosystem services provided by mountain farmers

Close-to-nature, small structured alpine grasslands are biodiversity hotspots, providing a range of ES to various economic sectors and the society (e.g. recreation, genetic resources, habitats for biodiversity). For farmers in mountain regions, grassland-based milk and beef production is an important source of income, but at the same time faced by low yields and high production costs, jeopardising this form of farming. National and global market competition exacerbates the strong decline in (small) mountain farms, reducing ES delivery. However, keeping up alpine management and ES delivery demands cost-covering incentives to farmers. Here, private business models, building on the valorisation of ES, could open up new opportunities, especially as the EU's Green Deal and its strategies, directives and regulations require companies to reorganise their sustainability efforts. This study’s aim is therefore to identify fundamental supply and demand side elements required for the establishment of new ES business models for mountain agriculture. The elobaration of the requirements and willingness to pay of the demand side as well as farmers' acceptance regarding measurement and control mechanisms (burecracy)of biodiversity should play a big role.