High environmental value (HEV) certification: sharing of costs and risks among value-chain stakeholders

Abstract

We have recently witnessed the emergence of many farm certification schemes whose common objective is to identify and promote certain agroecological practices with a view to attaining environmental goals and meeting consumer expectations. Our study evaluated how farmers are economically impacted when adopting France’s voluntary high environmental value (HEV) certification scheme. Focusing on multiple crop types and interacting with multiple stakeholders, we estimated the added costs and coordination requirements engendered by HEV certification. Our results show that these costs can increase in a crop-dependent manner. Thus, to further encourage the spread of the HEV certification scheme, it is essential to improve coordination and cost-sharing among value-chain stakeholders. In its latest CAP Strategic Plan, France proposed supporting HEV-certified farms via the European Union’s eco-scheme instrument, which should provide an additional boost.