Abstract
This paper uses a contingent valuation method to investigate the economic conditions for the development of biodiversity-friendly paddy rice agriculture in terms of farmer willingness to adopt such agriculture and consumer willingness to purchase such products. We focus on the rice grown in such a manner to preserve the habitats of the indigenous fish species of Lake Biwa. We gathered the data used in our analysis from questionnaire surveys of six rural communities in Shiga Prefecture from 2010 to 2011 and obtained the following results: (i) a price premium for rice grown through biodiversity-friendly agriculture encourages farmers to adopt such practices; (ii) consumers who are familiar with biodiversity-friendly paddy rice agriculture are likely to purchase such rice. Hence, the information dissemination of such agriculture to consumers will stimulate demand; and (iii) consumers who frequently participate in community events are likely to purchase rice grown through biodiversity-friendly paddy rice agriculture. Therefore, in this context, the accumulation of social capital in any rural community that is engaged in biodiversity-friendly paddy rice agriculture contributes to the development of such agriculture.
