1. 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

2. 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.

3. 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).

4. 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.

5. 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)

6. 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.

7. 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.

8. 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

9. 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

10. 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

11. 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)

12. 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?

13. 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

14. 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
0.14
0.26
-0.40
0.17
0.08
-0.24
-0.8
-0.6
-0.4
-0.2
0
0.2
0.4
0.6
0.8
low
m
edium
high
3
€
5
€
8
€
blem
ishing
featurem
onotonous
w
ellpreserved
evocative
Partialpreference
Wine Price Landscape

15. 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

16. 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

17. 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

18. 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

19. 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

20. 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?:

21. 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

22. 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?

23. 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.

24. THANK YOU ALL FOR YOUR
ATTENTION