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Biological Conservation 305 (2025) 111069
Contents lists available at ScienceDirect
Biological Conservation
journal homepage: www.elsevier.com/locate/biocon
Technological innovations for biodiversity monitoring and the design of
agri-environmental schemes☆
Matteo Zavalloni a,*, Stefano Targetti b , Davide Viaggi b
a
b
University of Urbino Carlo Bo, Department of Economics, Society and Politics, Via Saffi 42, 61029 Urbino, Italy
University of Bologna, Department of Agricultural and Food Sciences, Viale Fanin 50, 40127 Bologna, Italy
A B S T R A C T
Policymakers and scholars are increasingly interested in result-based schemes to improve the performance of biodiversity conservation policies. However, the
availability and accuracy of monitoring technologies challenge a shift from traditional input-based incentives to result-based schemes. Inspired by recent techno
logical developments, we develop a model based on a Bayesian framework to analyze the policy implications of potential improvements in biodiversity monitoring
quality. Our numerical results suggest that improving monitoring quality increases the number of farmers enrolling in the scheme and their efforts. The availability of
monitoring technologies with sufficiently high quality could make result-based schemes more performative than input-based ones. Monitoring developments might
unlock the potential of result-based schemes and lead to their wider adoption.
1. Introduction
Biodiversity conservation policies need monitoring programs that
accurately measure biodiversity trends and are affordable (Sommerville
et al., 2011). Technological innovations applied to monitoring can
improve the value of a biodiversity policy if they reduce costs and time/
effort and overcome the need for technical expertise (e.g., taxonomists)
that currently hamper the development of large-scale monitoring pro
grams (Proença et al., 2017). Future perspectives in the advancements of
monitoring techniques and approaches include citizen science (Ryan
et al., 2018), DNA-based techniques (Hebert et al., 2016), automated
image processing (Torresani et al., 2023) and automated passive
acoustic monitoring (Biffi et al., 2024). In parallel, the recent de
velopments of AI would enable the automation of processing the large
datasets that monitoring technologies would create (Christin et al.,
2019; Lahoz-Monfort and Magrath, 2021). These novel techniques will
bring new possibilities for biodiversity monitoring and for the range of
potential uses of biodiversity data. This technological advancement
might also entail policy implications.
Traditionally, in agricultural landscapes, farmers have been incen
tivized to implement conservation practices through voluntary inputbased payments (Hanley et al., 2012). For example, in the European
Union Common Agricultural Policy, farmers may enroll in voluntary
schemes to reduce the intensity of farming (either through a reduction of
inputs or farmed land or through the establishment of seminatural ele
ments) in exchange for a payment (Baylis et al., 2008; Gars et al., 2024).
Often, these payments are based on the average opportunity costs,
defined as the extra costs or loss of income involved in complying with
the scheme. In such a case, biodiversity monitoring is mainly aimed at
evaluating the policy impact and does not affect the potential farmers’
efforts and decisions. Despite some positive results, these types of
environmental subsidies have been criticized for not being capable of
halting farmland biodiversity decline (Pe’er et al., 2022). One of their
problems is that the reward for the farmers is not linked to any actual
outcome in terms of biodiversity conservation. Thus, there is a high risk
of spending money for no conservation results (Ferraro, 2008).
To solve these problems, the scientific literature has suggested the
adoption of result-based agri-environmental schemes (Burton and
Schwarz, 2013; D’Alberto et al., 2024; Derissen and Quaas, 2013;
Drechsler, 2017; Herzon et al., 2018; Tanaka et al., 2022).1 The idea
behind this approach is to pay farmers not for their actions but for what
they actually achieve in terms of conservation. Despite the apparent
triviality of their rationale, implementing result-based schemes hides
several challenges. One of the most relevant challenges is the uncer
tainty around the payoff for farmers enrolling in the scheme (Bartkowski
et al., 2021; Derissen and Quaas, 2013; Drechsler, 2017). Indeed, result-
This article is part of a special issue entitled: Technologies for new AES published in Biological Conservation.
* Corresponding author.
E-mail addresses: matteo.zavalloni@uniurb.it (M. Zavalloni), stefano.targetti@unibo.it (S. Targetti), davide.viaggi@unibo.it (D. Viaggi).
1
In the literature, result-based schemes are also alternatively called, for example, “outcome-based” (Tanaka et al., 2022), performance-based (Derissen and Quaas,
2013), or output-based (Drechsler, 2017).
☆
https://doi.org/10.1016/j.biocon.2025.111069
Received 30 June 2024; Received in revised form 21 February 2025; Accepted 3 March 2025
Available online 10 March 2025
0006-3207/© 2025 The Authors. Published by Elsevier Ltd. This is an open access article under the CC BY license (http://creativecommons.org/licenses/by/4.0/).
M. Zavalloni et al.
Biological Conservation 305 (2025) 111069
based payoffs are subject to two sources of uncertainty. First, the success
of conservation is subject to environmental uncertainty due to, e.g.,
weather variations (González-Trujillo et al., 2023; Lindenmayer et al.,
2019) and/or invasive alien species (McCann, 2000). Moreover, the
effect of agri-environmental practices on biodiversity is not perfectly
known (Duru et al., 2015). Second, result-based schemes inherently
require monitoring activities to indicate whether a biodiversity target
has been reached and consequently to gauge the payment on a measure
of biodiversity. Monitoring, in turn, is subject to errors (Henry et al.,
2008) that would hence further exacerbate the environmental uncer
tainty. For example, the malfunctioning of a passive acoustic monitoring
device could prevent detecting a target species (Markova-Nenova et al.,
2023). Such uncertainty creates an economic environment in which
undertaking (costly) efforts to reach a biodiversity target could lead to
unsuccessful outcomes that would not be rewarded in a result-based
scheme. This uncertainty, in turn, might negatively affect the willing
ness to enroll in such a scheme.
Our paper aims to provide a framework to evaluate how monitoring
quality affects agri-environmental schemes’ design. Using a theoretical
model, we show how monitoring quality affects farmers’ decision to
uptake a result-based scheme and, eventually, how it affects the agrienvironmental scheme design. In detail, first, we analyze farmers’ de
cisions on the intensity of effort to conserve biodiversity under a resultbased scheme. We assume that farmers know the quality of monitoring,
i.e., the probability that monitoring will correctly detect their success in
conserving biodiversity (or, on the opposite side, to make mistakes).
Second, we introduce farmers’ reactions to the regulator’s decisions to
adopt better monitoring technologies and implement result-based
schemes (rather than input-based ones). We model this second aspect
through a Bayesian framework, in which monitoring quality is used to
update the belief about biodiversity conservation success.
The novelty of this paper relates to the analysis of the impact of
biodiversity monitoring quality on the performance of result-based agrienvironmental schemes. The issue of uncertainty associated with resultbased schemes has been analyzed for a long time (Bartkowski et al.,
2021; Derissen and Quaas, 2013; Drechsler, 2017). However, to the best
of our knowledge, the distinction between the uncertainty generated by
environmental processes and by monitoring quality has not been
addressed. The distinction is, however, important as the latter is an
endogenous variable for policymakers (Zabel and Roe, 2009). More in
general, while it has not been evaluated in terms of scheme design,
monitoring has often been indicated as a challenge for the imple
mentation of result-based schemes, and it is increasingly analyzed
(Alblas and van Zeben, 2023; Granado-Díaz et al., 2024; Tanaka et al.,
2022). Furthermore, in a recent survey, D’Alberto et al. (2024) reported
that monitoring is a critical factor for the attitude of farmers toward
result-based schemes. Also, Bayesian approaches for the assessment and
design of monitoring biodiversity are not new (Runge et al., 2011). For
example, Polasky and Solow (2001) apply it to the problem of site se
lection, and Drechsler (2000) suggests it (but does not analyze) to
explicitly take into account the improvement in data to choose among
different management options. However, it has not been used to eval
uate the performance of result-based schemes.
The paper’s results have a range of implications related to the
formulation of biodiversity policy and, in particular, to the potential
implementation of result-based schemes to improve agri-environmental
policies. As our model suggests, the availability of monitoring technol
ogies (their accuracy and their costs) affects the net value of biodiversity
conservation created by result-based schemes. This ultimately de
termines the design of agri-environmental schemes targeting biodiver
sity (Gibbons et al., 2011), i.e., what type of incentive should be
implemented. As we will see, result-based schemes provide a higher net
expected value from biodiversity conservation than input-based ones,
but only if monitoring accuracy is relatively high.
The paper proceeds as follows. Section 2 reviews the implications of
improving biodiversity monitoring performance. In section 3, we
describe the model and its results. Section 4 discusses such a result and
concludes.
2. Background: An overview of biodiversity monitoring
technologies, their performance, and their costs
Balmford and Gaston (1999) claimed that money spent on biodi
versity data collection is worth its cost. However, quantitative evalua
tions of the cost-effectiveness of different sampling protocols are rare or
based on significantly simplified cost estimations (Gardner et al., 2008).
The costs of biodiversity monitoring depend on the objectives and use of
the information provided (Caughlan and Oakley, 2001). Monitoring for
policy compliance, targeting and evaluation, scientific research, etc.,
requires different approaches and protocols, thus incurring widely
different costs. Moreover, for the same objective, strategies and, there
fore, costs may vary considerably (Schmeller et al., 2015). Monitoring
cost considerations are particularly critical when the condition for a
voluntary monetary payment is linked to the provision of an environ
mental service (Gibbons et al., 2011). This is the case for payments for
environmental services (Wunder, 2015), and more particularly for
result-based schemes in which cost-effective2 monitoring is important
for their success in achieving conservation targets (Schaub et al., 2025).
The identification and development of indicators and monitoring
approaches fitting to result-based schemes are the focus of several
studies (Elmiger et al., 2023; Matzdorf et al., 2008; Pinto-Correia et al.,
2022) because these are substantial in determining or hampering their
acceptability and their successful implementation (D’Alberto et al.,
2024). Indicators for biodiversity monitoring should be designed to be
ecologically relevant and cost-effective according to the context
(Cantarello and Newton, 2008). Therefore, generalization about cost
and feasibility is difficult as different indicators have strikingly different
costs and involve different protocol requirements for the measurement
of parameters along with notable labor time differences (Carlson and
Schmiegelow, 2002; Levrel et al., 2010; Targetti et al., 2014). Although
cost differences are too wide to provide a consistent overview, general
evidence converges to consider labor and the availability of taxonomic
expertise as the critical resources for field-based indicator measure
ments (Gardner et al., 2008; Ji et al., 2013; Qi and Perry, 2008; Targetti
et al., 2014).
In this prospect, several strategies have been suggested, such as data
collection based on lower expertise (and thus low-cost) or innovative
monitoring technologies relying on (semi)automatic identification that
thus allows reduced labor time requirements. Levrel et al. (2010) and
Oliver and Beattie (1996) suggested that inventories of terrestrial in
vertebrates generated by non-specialists (e.g., based on morphospecies)
were potentially cost-effective. For instance, estimations point to
potentially relevant cost reductions for biodiversity surveys if citizen
scientists could be engaged. Breeze et al. (2021) report costs for different
pollinator monitoring schemes, designed to identify trends in the
abundance of insect pollinators in the UK, ranging between £6159/year
for a low-intense volunteer scheme vs. £2.7 M/year for an intense
professional-based monitoring network. Based on a European-level
farmland biodiversity pilot sampling, Targetti et al. (2014) estimated
up to 77 % cost saving for a farm-level biodiversity sampling in the case
of volunteer-based fieldwork. Levrel et al. (2010) reported that up to 4.4
M EUR had been saved by the French administration thanks to the
involvement of citizen scientists in the national-level butterfly and bird
biodiversity monitoring. Note that cost savings are only some of the
many advantages of citizen science approaches. This is particularly true
in the case of farmland biodiversity monitoring, as the potential
engagement of farmers in monitoring would disclose several additional
2
We use the term cost-effective to indicate the cheapest option to obtain a
desired level of accuracy, where accuracy can be measured in terms of statis
tical power (Beranek et al., 2024).
2
M. Zavalloni et al.
Biological Conservation 305 (2025) 111069
positive impacts on agricultural sustainability (Ryan et al., 2018).
Innovative technologies developed for biodiversity monitoring may
have the potential to be employed for result-based schemes. Franco et al.
(2007) found that a traditional bird transect survey was more costeffective than telemetry, but targets and range influenced such a
result. For instance, telemetry was the most cost-effective in poor access
areas. Technical and data analytical advancements based on Unmanned
Aerial Vehicles (UAV) make this option a valid alternative for moni
toring biodiversity (Torresani et al., 2023). Results from on-ground
comparisons of UAV and expert-based surveys of the presence of
flowers as a proxy for pollinator abundance outline that UAV is not
currently a ‘game changer’ for result-based schemes. Further research on
standardized image elaboration is needed for real-life applications
(Schöttker et al., 2023). Higher computation post-processing costs of
UAV outweigh the reduced field-labor efforts. However, as a reduction
of technology-related costs is expected, and as the lower unitary costs
per area compared to field sampling allow economies of scale in the case
of large-area monitoring, there is likely a relevant future potential for
UAV monitoring.
Markova-Nenova et al. (2023) analyzed the cost/effort of bird
monitoring based on passive acoustic recording to identify affordable
monitoring solutions for result-based schemes. Results outline lower
costs for human observation for ‘normal’ daytime monitoring. Acoustic
monitoring had, on the contrary, a cost advantage in cases of monitoring
of rare species that require more field trips or nighttime sampling. C.a.
250 EUR /ha per day and nighttime monitoring in human monitoring vs.
c.a. 175 EUR /ha in case of passive audio monitoring were estimated.
Attention is also growing on the development of DNA-based techniques,
but available cost estimations show contrasting results. Gueuning et al.
(2019) reported almost double costs for metabarcoding in comparison to
species identification. However, the result was based on laboratory ac
tivities only, as the same fieldwork sampling served both parameter
estimations. Opposite results are reported by Ji et al. (2013) for
arthropod and bird monitoring. DNA sampling costs (from samples to
taxonomies) were four times smaller in the three different countries of
the study in comparison to the use of taxonomic expertise. The Centre
for Biodiversity Genomics indicated significant cost reductions from
bulk samples to species assessment (Secretariat of the Convention on
Biological Diversity, 2021). The result was based on the consideration of
decreasing analytical costs and a sequencing output of instruments
approximately doubling every nine months. Such reports outline a range
of potential advantages of metabarcoding, including laboratory skills
that are more abundant than taxonomic expertise, the possibility to
centralize the analysis in a few labs (a single instrument can currently
process samples containing millions of specimens in a month), and
availability of samples for third party verification. However, the use of
DNA techniques in result-based schemes is conditional to the availability
of databases fitting to the agro-ecological area and a future consistent
reduction of reagent costs (Steinke et al., 2022). Bartkowski et al. (2021)
suggested circumventing the monitoring problem for result-based
schemes employing models instead of direct monitoring data. Such an
approach would ensure a range of advantages, including minimizing
risks for farmers and, thus, an expected higher uptake of environmental
schemes. However, this would also give up several positive aspects of
result-based schemes. Some advantages of result-based over input-based
are, for example, the valuable provision of information about biodi
versity status, the inclusion of farmers’ knowledge in the process, and
the stimulation of innovation connected to the ‘production’ of
biodiversity.
Concerning the analysis of cost-effective monitoring solutions, re
sults from several studies outline a non-linear relation between in
dicators requiring higher efforts for their measurement and their
accuracy as biodiversity proxies (e.g. Gardner et al., 2008; Qi and Perry,
2008). Similarly, findings reported by Lüscher et al. (2014) and by
Targetti et al. (2016) suggest that relatively low-cost parameters such as
vegetation are accurate, economically feasible, and capable of
conveying information to a range of users like farmers, administrators,
and consumers. This is relevant for the setting-up of monitoring schemes
for result-based schemes. Indeed, farmers need clear information about
their capacity and/or probability of producing biodiversity, and there
fore, intelligibility and trust in the measurement are of primary impor
tance to facilitate the adoption of such contracts (D’Alberto et al., 2024;
Gibbons et al., 2011). In this view, biodiversity monitoring for resultbased schemes should not only provide reliable information on results
but also inform farmers about their performances. This points to the
relevance of including indicators that can reduce uncertainty for farmers
and support their decision-making appropriately (Runge et al., 2011).
3. A framework for the assessment of different monitoring
technologies
3.1. Model description
From the previous section, we understand that monitoring technol
ogies vary in quality, costs, and the costs associated with improving
accuracy. Building upon such findings, we now develop a model for
assessing different monitoring technologies and their implications for
designing result-based agri-environmental schemes. Our main intuition
is that monitoring quality and its costs affect the net expected value of
biodiversity conservation from result-based schemes.
First, we look at the perspective of the farmers. The key feature of a
result-based scheme is that farmers who enroll are paid only if a specific
conservation target is actually reached (and not for what they imple
ment). As such, the economic environment in which farmers make de
cisions is subject to a double source of uncertainty. The first one is the
natural stochasticity of environmental processes. The second one is the
quality of monitoring, i.e., the accuracy of monitoring programs in
detecting the success of conservation efforts if this is achieved. Here, we
model monitoring quality as the probability of correctly identifying the
achievement of a biodiversity conservation target. We embed moni
toring quality in the farmer’s program to evaluate its effect on their
decision to enroll in a result-based scheme. Not surprisingly, increasing
monitoring quality causes an increase in the farmers’ enrollment and in
the intensity of their conservation efforts. As accuracy is increased, for
any given effort level, the probability of obtaining the payment is higher
(while costs do not change), and hence, their payoffs are greater.
Second, we introduce these elements in the regulator programs. Once
the farmers have decided on the efforts and a certain level of conser
vation is reached, monitoring provides a message on the status of the
biodiversity. We model the regulator perspective through a Bayesian
framework, in which the message is used to update the probability of
conservation success and, hence, the expected value of the result-based
scheme (the value of conservation minus the payments that are attrib
uted to the farmers). As this computation depends on the accuracy of the
technology that is used, the regulator maps different monitoring quali
ties to their expected values and confronts them with their costs. Based
on this, she then chooses the monitoring quality level that leads to the
highest net expected value. Finally, she compares the net expected value
of result-based schemes with that of input-based ones to decide what
mechanism to implement. Monitoring quality affects then the net ex
pected value of result-based schemes through three mechanisms: by
influencing the efforts of the farmers, by determining the accuracy of the
messages regarding the status of biodiversity, and by its costs.
We now mathematically describe the problem at stake. Imagine that
there is a certain number of farmers in a given landscape. Each farmer
(indicated by the index i) decides on the conservation effort level (ei ).
For simplicity, assume that they can implement “low” or “high” con
servation efforts (respectively ei = eLi and ei = eH
i ) in addition to no
enrollment (ei = 0). For instance, ‘non-intervention’ practices, such as
the delay of mowing a grassland, require lower efforts than an active
intervention, such as seeding a flower strip. Assume that the higher
3
M. Zavalloni et al.
Biological Conservation 305 (2025) 111069
efforts entail both a higher probability of achieving a given conservation
L
target and a higher cost. We use βH
i and βi to indicate respectively the
probability of conservation success under the high and the low efforts
L
H
L
H
L
(βH
i > βi ); similarly, we indicate the costs by ki and ki , with ki > ki .
Imagine that a regulator formulates a result-based scheme. In such a
scheme, farmers would be rewarded if they enroll and if a biodiversity
target is achieved and detected. Use P > 0 to indicate the payment level
that farmers would obtain if the target were detected as a result of the
monitoring. The payment is not attributed if the target is not detected (i.
e., P = 0). Call η the monitoring results, i.e., η = 1 if the conservation
target is detected and η = 0 if not. We assume that the regulator bears
the cost of monitoring. Thus, this is not part of the farmers’ decision
framework. As described in the previous section, monitoring is imper
fect, and errors can be made. Assume that the probability of correctly
detecting the biodiversity target if this is achieved is 0 < m < 1. In other
words, m is our measure of monitoring quality. On the opposite side, 1 −
m is the probability of claiming that the biodiversity is not achieved even
if this was the case (i.e., probability of incurring a false negative; this
attains monitoring specificity). For simplicity, we neglect the possibility
of having false positives, i.e., the probability of detecting the biodiver
sity target if this is not achieved is equal to 0. Despite this simplifying
assumption, the model adequately describes the main features of the
problem at stake.
consider whether or not the low effort leads to a positive expected
payoff. This is checked by solving for m the inequality βLi • m • P −
3.2. Farmers enrollment
We now analyze the conditions under which it is advantageous, from
the policy point of view, to adopt a technology of higher quality. To do
so, we build upon the results of the previous section, but we take into
kL
i
kLi > 0. Such a condition is verified if m > mLi = βL •P
. Intuitively, the
i
enrollment in the scheme makes sense only if the monitoring quality is
sufficiently high. Otherwise, the uncertainty of monitoring will make
enrollment unprofitable for farmers. A decrease in the opportunity costs
and in the probability of improvement, as well as an increase in the
payment level, decreases such a threshold. The threshold for having
positive payoffs in the case of high effort is higher than that of low effort,
as long as the ratio cost/probability is higher than that of the low effort
kH
i
βH
i
kL
> βiL . By comparing the expected payoff in the high and low effort, we
i
determine the monitoring quality threshold that causes the switch to
kH − kL
ward the high effort. Such a threshold is mH*
= βHi− βL i •P.
i
( i i)
To summarize, in case of low monitoring quality, very few farmers
(only those with very low costs) enroll in the scheme. Once the moni
toring has improved, farmers enroll by implementing the low efforts;
further improvements in the monitoring quality lead to the imple
mentation of the high effort. Fig. 1 depicts these patterns using a simple
numerical example, which is described in A1 Appendix to section 3.2.
3.3. Policy implications: The decision to adopt a better technology
As mentioned above, farmers who enroll in the scheme face a double
source of uncertainty. The first is due to the stochasticity of environ
mental processes, represented by the two probabilities βLi and βH
i . The
second one is due to the imperfect capacity of the monitoring technology
to detect the success of conservation (the target is achieved), repre
sented by m. The probability of obtaining the result-based payment is
then differentiated by the effort the farmers implement. In case of low
effort, such a probability is αLi = m • βLi , i.e., the probability that con
servation success is detected times the probability that it is actually
H
achieved. Similarly, the probability for the high effort is αH
i = m • βi .
Given these uncertainties, farmers enrolling in the result-based scheme
are unsure about the payoffs they would obtain (Derissen and Quaas,
2013; Drechsler, 2017). Such a payoff is only certain ex-post, after the
efforts’ implementation and monitoring outcome. Hence, the decision to
enroll is based on the expected payoffs. We assume that a farmer is riskneutral, and in case of low effort, the expected payoffs are given by3:
)
) (
) (
)
(
(
(1)
π Li = m • βLi • P − kLi + (1 − m) • βLi • − kLi + 1 − βLi • − kLi
The first term in eq. (1) is the expected payoff when the biodiversity
target is achieved, and the monitoring detects the improvement; the
second term is the expected payoff if the monitoring does not detect the
biodiversity target even if this is actually achieved; the third term rep
resents the case when the biodiversity target is not achieved. In latter
cases, enrollment in the scheme would only lead to the cost of kLi . Eq. (1)
simplifies to πLi = βLi • m • P − kLi . Similarly, the expected payoff from
enrolling and implementing the high effort is given by πHi = βHi • m • P −
kHi . Farmers would then decide by exerting the effort (no enrollment,
low or high effort) that would lead to the highest expected payoffs.
(
)
(2)
π i = max 0, πLi , πHi
ei
The level of monitoring quality determines whether farmers enroll in
the scheme or not, and if enrolled, the effort level, ceteris paribus. First,
Fig. 1. Farmers’ response to a result-based scheme under different quality of
monitoring technology. The red line depicts the expected payoff if the farmer
implements the low effort. In blue, the expected payoff is in case the farmer
implements a high effort. The black line depicts the overall expected payoff
implementing the optimal effort. (For interpretation of the references to colour
in this figure legend, the reader is referred to the web version of this article.)
3
Risk neutrality is surely a simplifying assumption (Iyer et al., 2020), but the
model still captures the essential element of the issue at stake. Risk aversion can
be included by, e.g., reformulating farmers’ utility using a Bernoulli utility
function, as in Drechsler (2017).
4
M. Zavalloni et al.
Biological Conservation 305 (2025) 111069
account a population of farmers rather than a single one. Moreover, we
introduce a Bayesian framework to model a regulator’s decision to adopt
one of the available monitoring technologies, which are characterized
by different quality (m levels) and costs. A critical but reasonable
assumption is that the regulator knows the distribution of the relevant
parameters (probabilities and the costs) across the farmers, but she is not
able to define the parameter levels for each one of them. To evaluate the
problem at stake, assume that there are only two monitoring technolo
gies, one of low quality (ml ) and one with high quality (mh ), with
mh > ml . High-quality technology is more expensive than low-quality
( )
( )
technology, such as C mh > C ml . Intuitively, the regulator will
adopt the high-quality technology if the expected value in terms of
conservation generated by the scheme given the low-quality technology
( ))
(EV rb ml minus its costs is lower than the one provided by the high( )
quality technology (EV rb mh ) minus its costs. Mathematically, adopt
( )
( )
ing high-quality technology makes sense if EV rb mh − C mh >
( l)
( l)
EV rb m − C m .
( )
( )
To compute EVrb mh and EVrb ml , first, we assume that the regu
lator knows the behavior of the farmers given different monitoring
qualities. In other words, for example, the regulator knows that farmers
might be the use of passive acoustic devices. Increasing the accuracy of
the information would require increasing the number of such devices. In
these two situations, the cost of monitoring a farmer is different for any
given level of accuracy required. We model this notion by further
qualifying the costs of monitoring. Assume that the costs of monitoring
each enrolled farmer are a function of the monitoring quality and a
parameter c. For simplicity, imagine a linear relationship. Call E the total
number of farmers enrolled, i.e., those who exert a strictly positive effort
as the eq. (2) solution. The monitoring cost of a result-based scheme is
then C = m • c • E. Recall that the regulator bears such a cost, but the
monitoring quality affects the total number of farmers enrolled.
We now explore the effect of advancements in monitoring technol
ogies, represented by a reduction in the value of parameter c. In Fig. 3,
we represent the simulations of the net expected value of the resultbased scheme (the expected value minus the monitoring costs). We do
so under two different monitoring technology costs, i.e., with cb < ca ,
with a fixed payment level (the numerical implementation is described
in A2-b numerical examples). The decrease in the cost of monitoring
quality (in Fig. 3, moving from the yellow to the blue curve) has two
effects. First, the peak in the net expected value of the biodiversity
conservation moves to the right, i.e., the optimal monitoring quality
increases. Second, it increases the overall expected value of the biodi
versity conservation generated by the result-based scheme. This second
effect suggests that technology development might unlock the potential
of result-based schemes, which would then provide a greater net ex
pected value than input-based ones.
In an input-based scheme, farmers are offered a subsidy in exchange
for a given effort in conserving biodiversity. Hence, in such a scheme,
monitoring quality does not affect the farmers’ response. Imagine that
the scheme requires the implementation of a high effort at a payment P.
Farmers enroll only if the opportunity cost is lower than the payment, i.
e., if P > kH
i . By aggregating all the efforts of the enrolled farmers, we
obtain the resulting expected net value of the input-based scheme and
compare it with the resulting value from the different result-based ones.
One such comparison is depicted in Fig. 3, where the black line repre
sents the expected net value of the input-based scheme. The graph
suggests two main implications for the design of agri-environmental
policies. First, there might be cases where the costs of the monitoring
technology are so high that it is preferable to incentivize farmers
through an input-based scheme. Second, there might be cases where the
cost of a given technology would push the result-based scheme to yield
the highest expected net value of conservation, but only if a minimum of
monitoring quality is attainable. In the picture, if the monitoring quality
is lower than about 0.6, the input-based scheme is the best performer.
kL
i
will start implementing the low effort only in case m > βL •P
, as we have
i
shown in the previous section. She also knows the distribution of the
probabilities of reaching the biodiversity outcomes (βLi and βH
i ). To
compute the values, first, it is necessary to update the probabilities of
achieving the biodiversity target for each farm enrolling in the scheme,
given the monitoring results (which are dependent on the monitoring
quality) and the prior probabilities (which are βLi and βH
i ). Then, the
expected value of biodiversity conservation (the economic value of
biodiversity conservation minus the policy costs) for each possible
monitoring result (detection or not of the conservation target) is
computed. Finally, considering the total probabilities of the two possible
monitoring results, the overall value is computed and aggregated over
the entire farmers’ population. The mathematical procedure is described
in A2 - Appendix to section 3.3.
A simple numerical example, described in the appendix A2-b, illus
trates the problem. For a given level of payment, moving from ml to mh
entails an overall change in the farmers’ responses. As shown in Fig. 2,
increasing the monitoring quality causes an increase in the number of
farmers that enroll in the scheme, with an effect greater for those
farmers that have a higher prior of reaching the conservation target (to
the right of both graphs). In our example, in the case of ml , 879 farmers
do not enroll, 50 farmers implement the low effort, and 70 farmers
implement the high effort. In the case of high-quality monitoring, these
numbers change to 656, 142, and 201, respectively. The amelioration in
the monitoring quality causes an increase in enrollment and an
improvement in the intensity of the effort, which enlarges the social
value generated by the scheme. Overall, the RB scheme would enable
( )
( )
obtaining EV rb ml = 5876.16€ and EVrb mh = 13097.85€ hence, the
adoption of the high-quality technology makes sense if the difference in
the cost between the high-quality technology and the low-quality one is
lower than 7221.69€.
4. Discussion and conclusion
Shifting to incentive schemes that pay farmers for what they achieve
(i.e., result-based schemes) rather than for what they do (input-based
schemes) is likely to improve the performance of biodiversity conser
vation policies (e.g. Meier et al., 2024). The relevance of such an
approach is also highlighted in the Common Agricultural Policy
(Regulation (EU) 2021/2115, 2024). However, among others, the poor
performance of monitoring technologies (in terms of quality or costs)
hampers the implementation of result-based schemes. Monitoring ac
curacy and cost are at the core of result-based schemes and have im
plications for their acceptability (D’Alberto et al., 2024; Granado-Díaz
et al., 2024; Tanaka et al., 2022). A range of recent developments (e.g.
Biffi et al., 2024) in monitoring technologies might have relevant effects
on the design of result-based agri-environmental schemes in the near
future. Inspired by recent technological developments, we provide a
framework to analyze the policy implications of potential improvements
in biodiversity monitoring quality.
Our framework is based on a theoretical model that we use to eval
uate how an amelioration in the capacity to correctly assess the
3.4. Policy implications: Technology developments and the
implementation of result-based schemes
To investigate the issue further, we focus on the policy implications
of the developments in monitoring technologies and examine how their
associated costs are linked to improvements in accuracy. Imagine
different monitoring technologies that are differentiated by the costs
required to improve information quality. As an example, imagine that a
monitoring technology is represented by expert-based sampling.
Improving the quality of information would require, for instance,
increasing the number of trips to the study site. Another technology
5
M. Zavalloni et al.
Biological Conservation 305 (2025) 111069
Fig. 2. Farmers’ response to a result-based scheme in case of low (upper panel) and high (bottom panel) quality monitoring technologies. Each farmer is mapped by
the probability of conservation success (βLi ; y-axis) and by the opportunity costs (kli ; x-axis), both for the low effort. No enrollment is depicted in grey, and low and
high efforts are shown in violet and red, respectively. (For interpretation of the references to colour in this figure legend, the reader is referred to the web version of
this article.)
6
M. Zavalloni et al.
Biological Conservation 305 (2025) 111069
(Dasgupta, 2022; Tienhaara et al., 2020), economic evaluation of
biodiversity is a debated topic (Kallis et al., 2013; Nunes and van den
Bergh, 2001). For example, most of the studies that evaluate biodiversity
use proxies that do not fully account for the complexity of the issue
(Bartkowski et al., 2015). Moreover, values might differ according to the
provision scale (Hein et al., 2006). Finally, valuation depends on
knowledge of the topic, which cannot be taken for granted (Spash and
Hanley, 1995). For these reasons, the economic valuation of biodiversity
should be taken cautiously. Further studies could extend the current
framework in such a way that monetary evaluation is not necessary.
Despite the limitations, the results entail several policy implications.
The recent developments in monitoring technologies -improving their
accuracy and reducing their costs- can potentially change agrienvironmental schemes’ design and increase their performance (Biffi
et al., 2024). More accurate monitoring technologies are important for
designing result-based schemes as these allow for reducing costs and
improving the quality of monitoring. Poor monitoring capacity has
indeed so far hampered the adoption of result-based schemes
(Bartkowski et al., 2021), and our results show that the choices on the
scheme design depend on the monitoring technology. The availability of
novel monitoring techniques, coupled with the advancement in other
digital technologies (Ehlers et al., 2021; Wätzold et al., 2024), suggests
the possibility of further experimenting with implementing resultsbased schemes. As such, policymakers should make an effort to review
novel possibilities for biodiversity monitoring technologies frequently.
From another perspective, this also means that the design of a biodi
versity result-based scheme should involve an a priori consideration of
the biodiversity targets that are of interest and that can be effectively
measured.
Fig. 3. The expected net value of two result-based schemes characterized by
different monitoring cost levels (ca > cb , respectively in yellow and in blue) and
the expected net value from an input-based scheme (in black). (For interpre
tation of the references to colour in this figure legend, the reader is referred to
the web version of this article.)
achievement of a biodiversity target affects the farmers’ response in a
result-based scheme. This result, in turn, is embedded in the regulator
problem of selecting the monitoring technology and, ultimately,
whether choosing a result-based or an input-based scheme. The results
suggest that improving the monitoring quality increases the number of
farmers enrolling in the scheme and their efforts. The improvement
creates a higher expected value, in terms of biodiversity conservation,
from the result-based schemes. Finally, if more precise or cheaper
monitoring becomes available, result-based schemes are likely to
improve the societal value of biodiversity conservation with respect to
input-based ones.
The model relies on simplifying assumptions that deserve to be
further explored. First, we do not address the possibility of having false
positives resulting from monitoring. Their inclusion would influence the
uptake of the result-based scheme as farmers’ probability of getting the
payment is increased. Presumably, this will also affect the decision on
the expected effort invested by farmers. Second, the model assumes that
monitoring quality is embedded in farmers’ decisions. Likely, this is not
straightforward in the real world, but the relevance of farmers’ aware
ness and understanding of the indicators employed has been shown in a
consistent body of literature (e.g. Elmiger et al., 2023; Pinto-Correia
et al., 2022). This means that besides the monitoring quality, its capacity
to convey information to farmers is of primary importance. Third, we
assume that farmers are risk-neutral. Introducing risk aversion, as in
Drechsler (2017), would undoubtedly enrich the analysis. Fourth, our
approach relies on a monetary evaluation of biodiversity, which is
necessary to compare the biodiversity outcome with the policy imple
mentation costs. Despite the enormous literature on the topic (Bakhtiari
et al., 2014; Nijkamp et al., 2008), and its importance in policy design
CRediT authorship contribution statement
Matteo Zavalloni: Writing – review & editing, Writing – original
draft, Methodology, Investigation, Formal analysis, Conceptualization.
Stefano Targetti: Writing – review & editing, Writing – original draft,
Investigation, Conceptualization. Davide Viaggi: Writing – review &
editing, Supervision, Funding acquisition.
Declaration of competing interest
The authors declare that they have no known competing financial
interests or personal relationships that could have appeared to influence
the work reported in this paper.
Acknowledgements
This research received funding from the European Union Horizon
2020 Research and Innovation Program under Grant Agreement No.
862480 (SHOWCASE). The views expressed in this paper are those of the
authors and do not necessarily reflect the position of the European
Commission. The authors wish to thank the editors and three anony
mous reviewers for their valuable comments. All remaining errors are
ours.
Appendix A
A.1. Appendix to section 3.2
Basic algebra leads to the simplification of the farmer’s expected payoffs. We represent eq. (1) for convenience: π Li = βLi • m • P − kLi . A farmer
enrolls in the scheme and at least exerts a low effort if the expected payoff from such a decision is positive. Mathematically, we solve the following
inequality:
π Li = βLi • m • P − kLi > 0
(a1)
7
M. Zavalloni et al.
Biological Conservation 305 (2025) 111069
kL
kH
i
i
i
i
and hence: mLi = βL •P
. Farmers with mLi > m will implement the low effort. A parallel procedure leads to the definition of mH
i = βH •P.
We now determine the conditions under which farmers would implement the high effort rather than the low one. This implies that the expected
payoffs from implementing the high efforts are greater than those from implementing the low effort. Mathematically, we solve the following
inequality:
βHi • m • P − kHi > βLi • m • P − kLi
(a2)
(
)
L
After rearranging (a2), we obtain m • P • βHi − βi > kHi − kLi , or mH*
=
i
kH
− kLi
i
P• βH
− βLi
i
. If the monitoring quality is greater than mH*
i , the farmer would
(
)
implement the high effort. An additional condition is that farmers would obtain positive expected payoffs. Mathematically this would entail that
H
mH*
i > mi , or that:
kHi − kLi
kH
)> Hi
( H
L
βi • P
P • βi − βi
(a3)
kH
kL
i
i
After rearranging, (a3) becomes βHi • kHi − βHi • kLi > βHi kHi − βLi • kHi , which, in turn, it simplifies to βLi • kHi > βHi • kLi , or to βiH > βiL . Hence, the ratio
cost/probability determines the best course of action. In summary, a farmer starts enrolling and implementing the low effort if mLi > m. The farmer
implements the high effort if mHi > m. This is shown in Fig. 1. Such a figure can be reproduced using kLi = 2, kHi = 6, βLi = 0.2, βHi =0.3, and P = 50, for
each level of m from m = 0 to m = 1.
A.2. Appendix to section 3.3
A.2.1. Theoretical framework
We now show the steps to compute EV rb (m), given the Bayesian framework.
]
[
Using the Bayesian notation, the priors of our problems are defined by β*i ϵ 0, βLi , βH
i , i.e., the probability of conservation success that is associated
with the solution of the maximization problem described in section 3.2. For example, if the optimal choice for a farmer is e*i = eLi , then the prior is β*i =
βLi . The monitoring quality θ(η|v) is the probability of detecting a successful conservation outcome (η = 1) or not (η = 0), given the status of
biodiversity (if conservation is successful v = 1, otherwise v = 0). In other words, v represents the true state of nature, i.e., whether the biodiversity
target has been reached or not. η represents the monitoring message, which can be positive or not depending on the monitoring technology’s intrinsic
quality to detect the state of nature correctly. As explained in the text, we assume that θ(η = 1|v = 1) = m, θ(η = 0|v = 1) = 1 − m, θ(η = 1|v = 0) = 0
and obviously (η = 0|v = 0) = 1. The probability of receiving a positive monitoring message given the prior belief of achieving the biodiversity target
(
)
is, therefore, Ψi m, η = 1, β*i = m • β*i , and the probability of receiving a negative message from monitoring (biodiversity target not detected)
(
)
weighted on the prior belief of non-achieving the biodiversity target is Ψi m, η = 0, β*i = 1 − m • β*i .
Given the results of the monitoring activities, the regulator updates her probability that the conservation target is actually reached. According to
Bayes’ theorem, the posterior probabilities depend on the prior belief of achieving the biodiversity target (β*i ), the monitoring quality θ(η|v) (i.e. the
probability of a positive message η, given the achievement of the biodiversity target v), and the overall probability of receiving a positive message
(
)
(
)
Ψi m, η = 1, β*i = m • β*i or a negative one Ψi m, η = 0, β*i =1 − m • β*i i. The posterior probabilities, according to Bayes’ theorem and using the no
tation of the model here described, are given by:
(
)
θ(η|v) • β*i
)
Ωi m, v, η, β*i = (
Ψi m, η, β*i
(a4)
In our simplified theoretical model, the posterior probabilities are therefore computed as follows. The posterior belief of achievement of the
biodiversity target given a positive message is given by:
(
) θ(η = 1|v = 1) • β*i
m • β*i
(
) =
Ωi m, v = 1, η = 1, β*i =
=1
*
Ψi m, η = 1, βi
m • β*i
(a5)
The posterior belief of non-achievement of the biodiversity target given a positive message is 0, as in our simplified model, we do not consider false
positives; a positive message would shift the belief to certainty:
(
)
(
)
(a6)
Ωi m, v = 0, η = 1, β*i = 1 − Ωi m, η = 1, v = 1, β*i = 0
The posterior belief of achievement of the biodiversity target given a negative message is given by:
) θ(η = 0|v = 1) • β*i
(1 − m) • β*i
(
) =
Ωi m, v = 1, η = 0, β*i =
*
Ψi m, η = 0, βi
1 − m • β*i
(
(a7)
The posterior belief of non-achievement of the biodiversity target given a negative message is:
(
)
(
)
Ωi m, v = 0, η = 0, β*i = 1 − Ωi m, η = 0, v = 1, β*i =
1 − β*i
1 − m • β*i
(a8)
We now compute the expected value generated by the farmer enrolling in the scheme once the monitoring positively detects the conservation
target. This is given by:
(
)
[
(
)]
*
*
EVRB
(a9)
i (m, η = 1) = Ωi m, v = 1, η = 1, βi • ( − P + B) − P • 1 − Ωi m, η = 1, v = 1, βi
The first term in equation (a9) is given by the multiplication of the probability of the achievement of the target (if the monitoring is positive) times
8
M. Zavalloni et al.
Biological Conservation 305 (2025) 111069
the value of the biodiversity (B) minus the payment that is attributed to the farmer (P). The second term is the probability of actually not achieving the
conservation target (despite the positive result from the monitoring) multiplied by the scheme’s costs.
The expected value generated by the farmer enrolling in the scheme in case the conservation target is not detected is just represented by the value
of biodiversity, as the payment, in this case, is not attributed:
(
)
*
(a10)
EVRB
i (m, η = 0) = Ωi m, v = 1, η = 0, βi • B
We now combine equations (a9) and (a10) to have the overall expected benefit from the scheme generated by farmer i, multiplying EVRB
i (m, η = 1)
and EVRB
i (m, η = 0) by respectively the probability that the result of the monitoring is positive or negative. This is the expected payoff attached to
farmer i from his enrollment in the scheme, given the monitoring technology:
(
)
(
)
*
*
RB
RB
EVRB
i (m) = Ψi m, η = 1, βi • EVi (m, η = 1) + Ψi m, η = 0, βi • EVi (m, η = 0)
)
(
*
RB
= m • β*i • EVRB
i (m, η = 1) + 1 − m • βi • EVi (m, η = 0)
(a11)
Finally, we sum over the farmers to obtain the aggregate benefits of the scheme: EV RB (m) =
∑
RB
i EVi (m).
A.2.2. Numerical examples
Here, we describe the numerical example we used to illustrate the theoretical framework. The parameters of the model are listed in Table 1.
Table 1
Parameter levels used in the numerical example.
Parameter
Description
Values
N
B
βH
i
Number of farms
Societal value of biodiversity conservation
Farmer-level probability of achieving the conservation target in case of high effort
999
100
Drawn randomly from a uniform distribution with a = 0.5, b = 1.
Farmer-level opportunity costs of biodiversity conservation in case of high effort
Farmer-level opportunity costs of biodiversity conservation in case of low effort
Payment levels
Monitoring quality
Cost of monitoring quality improvement
kLi = 0.2 • kH
i
P = [10, 20, 30, 40, 50, 60, 70, 80, 90, 100]
m = [0.1, 0.2, 0.3, 0.4, 0.5, 0.6, 0.7, 0.8, 0.9, 1]
c = [10, 20, 50]
βLi
kH
i
kLi
P
m
c
Farmer-level probability of achieving the conservation target in case of low effort
βLi = 0.3 • βH
i
Drawn randomly from a uniform distribution with a = 0, b = 100.
Fig. 2 is generated by considering ml = 0.2 and mh = 0.6, and P = 50, representing the average value of the opportunity cost distribution. Fig. 3
illustrates the case where P = 50, and ca = 2500, cb = 5000, cc = 12500.
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