Assessing the benefit of the agroecosystem services: Lithuanian preferences using a latent class approach

- A choice experiment on the ecosystem services in Lithuania was conducted.
- Preferences of Lithuanian citizens on ecosystem services was investigated using a Latent Class Model.
- The results of the application of latent class showed a high level of heterogeneity among Lithuanians.
- The current agri-environmental policy payments in Lithuania are much higher than the demand of Lithuanian respondents, expressed by their willingness to pay.

This study represents a first analysis of citizens' willingness to pay (WTP) for agroecosystem services in a Baltic country (Lithuania). Since it is part of the European Union, Lithuania applied environmental agriculture schemes to support the production of agroecosystem services by farmers. Therefore, understanding the demand of such services may help policy makers to allocate funds. This study revealed that Lithuanian residents are concerned about environmental problems that may be caused by agriculture. Moreover, while the provision of agroecosystem services is demanded, citizens show very different tastes concerning these services. The application of a latent class model highlights three groups of citizens with different tastes and levels of WTP. Among the ecosystem services tested, the landscape provisions show the highest level of heterogeneity across the class. This study's findings provide quantitative information concerning the demand for improvements in agroecosystem services through agri-environmental protection programmes. The obtained data supports the conclusion that choice experiments are a reliable tool to analyse consumers' preferences related to environmental protection in Lithuania.