Scenario Analysis to Investigate the Effect of Implementing Compensatory Payments for Reducing Water Erosion in Bulgaria
Scenario Analysis to Investigate the Effect of Implementing Compensatory Payments for Reducing Water Erosion in Bulgaria

Author(s): Svetozar Ivanov, Dimitar Nikolov
Subject(s): Social Sciences, Economy, Business Economy / Management, Agriculture, Energy and Environmental Studies, Sociology, Policy, planning, forecast and speculation, Environmental interactions
Published by: Университет за национално и световно стопанство (УНСС)
Keywords: agriculture; agri-environmental payments; water erosion; scenario analysis
Summary/Abstract: Soil degradation due to water erosion presents a critical challenge with far-reaching economic and environmental implications. This article focuses on strategies to enhance the efficacy of agro-ecological interventions aimed at mitigating water erosion. The Strategic Plan for Agriculture and Rural Development in the Republic of Bulgaria for the 2023 – 2027 period outlines specific measures, including the “Eco Scheme for Preservation and Restoration of Soil Potential” and the “Eco Scheme for Ecological Maintenance of Permanent Plantations,” to address this issue. For the purposes of this analysis, in addition to the size of compensatory payments, an indicator of the economic value of reduced water erosion is introduced. Three scenarios are simulated, each varying the size of agroecological payments. They are contingent upon specific outcomes achieved in reducing water erosion. The agri-environmental payments from the CAP 2023 – 2027 are tied to agricultural practices and are influenced by both the compensatory payment amount and the agricultural area. In the three scenarios considered, additional indicators include the economic value of reduced soil erosion and the extent of soil erosion reduction attributable to agro-ecological payments. For the purposes of this analysis, seven distinct crop farms located in the Blagoevgrad district were selected. The analysis revealed the necessity for differentiating compensatory payments based on the size of the farms and the specific outcomes achieved. Land degradation is a significant threat to sustainable development, particularly in Southern European countries (Barbayiannis et al., 2011). Farmers, primarily focused on their business operations and profit maximization, often lack awareness or concern for various environmental issues (Taguas and Gómez, 2015). Through their agricultural practices, farmers exert both positive and negative impacts on various processes that not only affect their own farms but also have broader implications for society and ecosystems. The adoption of effective management practices and investments in soil health protection plays a significant role in achieving balance in these processes. This approach leads to a reduction in soil erosion and degradation, enhances water retention, and helps prevent or mitigate the effects of natural disasters: landslides and floods etc. As a result of their activities, farmers have developed various protective systems in mountainous and semi-mountainous areas, where agricultural conditions are more challenging. The construction of stone walls, terracing, and other such elements by engaged farmers provides essential measures for reducing surface erosion and preventing landslides (Agnoletti et al., 2011). Soil erosion is a phenomenon, associated with a series of natural and/or anthropogenic processes of detachment and transfer of soil particles by wind, rain and irrigation waters ( Rousseva, 2008).

• Details
• Contents