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Reforming Agricultural Policies Will Help to Improve Environmental Performance

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  • Gwen DeBoe
  • Koen Deconinck
  • Ben Henderson
  • Jussi Lankoski

Abstract

Agriculture is a major source of environmental pressure worldwide. At the same time, most countries support the farming sector through a variety of policy instruments. This article discusses the impact of agricultural policies on environmental performance. The available evidence as well as modelling studies undertaken at the OECD show that the way in which agricultural support is provided affects its environmental impact. Support coupled to production or input use is particularly harmful for the environment, while other instruments such as largely decoupled payments, which do not depend on current production choices, are among the least environmentally harmful forms of support. Yet the most environmentally harmful instruments remain widely used, although less so in the EU. Policies should therefore be reoriented towards more decoupled forms of support – a reform which would pay a ‘double dividend’ in terms of both improved economic efficiency and environmental performance. This would reduce the environmental harm created by agricultural activities, but additional policy measures are needed to address the remaining environmental externalities – both in providing public goods and reducing environmental damage – that are not reflected in prices received or paid by farmers. Policymakers also have an important role to play in designing policies that can be effectively monitored and evaluated in terms of both their economic and environmental consequences. Au niveau mondial, l'agriculture est une source importante de pression sur l'environnement. En même temps, la plupart des pays soutiennent leur secteur agricole par le biais de divers instruments de politique. Cet article examine l'impact des politiques agricoles sur la performance environnementale du secteur. Les données disponibles ainsi que les études de modélisation entreprises à l'OCDE montrent que l'impact du soutien agricole sur l'environnement dépend du type de mesure employée. Le soutien couplé à la production ou à l'utilisation d'intrants est particulièrement nocif pour l'environnement, tandis que d'autres instruments tels que les paiements fortement découplés de la production, qui ne dépendent pas des choix de production courants, figurent parmi les formes de soutien les moins préjudiciables à l'environnement. Pourtant, les instruments les plus nocifs pour l'environnement restent largement utilisés, bien que l'Union européenne le fasse dans une moindre mesure. Les politiques devraient donc être réorientées vers des mesures de soutien plus découplées – une réforme qui apporterait un « double avantage » en termes d'amélioration à la fois de l'efficacité économique et des performances environnementales. Cela permettrait de réduire les dommages environnementaux de l'activité agricole. Des mesures gouvernementales supplémentaires sont cependant nécessaires pour remédier aux externalités environnementales persistantes – concernant à la fois la fourniture de biens publics et la réduction des dommages environnementaux ‐ qui ne se reflètent pas dans les prix reçus ou payés par les agriculteurs. Les décideurs de l'action publique ont également un rôle important à jouer dans la conception de politiques dont les conséquences économiques et environnementales peuvent être suivies et évaluées de manière efficace. Die Landwirtschaft ist weltweit eine der Hauptursachen für die Belastung der Umwelt. Gleichzeitig unterstützen die meisten Länder den Agrarsektor durch eine Vielzahl von politischen Instrumenten. In diesem Artikel werden die Auswirkungen der Agrarpolitik auf Umweltleistungen diskutiert. Die vorliegenden Erkenntnisse sowie Modellstudien der OECD zeigen, dass die Art und Weise, wie Agrarsubventionen gewährt werden, ihre Auswirkungen auf die Umwelt beeinflussen. Die an die Produktion oder die Nutzung von Betriebsmitteln gekoppelten Beihilfen sind besonders schädlich für die Umwelt. Andere Maßnahmen, die nicht an die aktuellen Produktionsentscheidungen gekoppelt sind, gehören dagegen zu den am wenigsten schädlichen für die Umwelt. Dennoch werden die umweltschädlichsten Maßnahmen weiterhin in großem Umfang eingesetzt, wenn auch in geringerem Maße in der EU. Die Politik sollte daher mehr auf die „entkoppelten” Maßnahmen setzen; entsprechende Reformen versprechen eine „doppelte Dividende”, denn wirtschaftliche Effizienz und Umweltleistungen würden sich gleichzeitig verbessern. Dies würde die durch die Landwirtschaft verursachten Umweltschäden verringern. Es sind jedoch noch weitere politische Maßnahmen nötig, um die verbleibenden Auswirkungen auf die Umwelt zu begrenzen und zwar sowohl hinsichtlich der Bereitstellung öffentlicher Güter als auch in Bezug auf die Verringerung von Umweltschäden. Diese Maßnahmen sollten sich nicht in den Preisen und Kosten der Landwirte niederschlagen. Die politischen Entscheidungsträger spielen zudem eine wichtige Rolle bei der Ausgestaltung von Politiken, die sowohl im Hinblick auf ihre wirtschaftlichen Folgen als auch auf ihre Umweltauswirkungen effektiv überwacht und evaluiert werden können.

Suggested Citation

  • Gwen DeBoe & Koen Deconinck & Ben Henderson & Jussi Lankoski, 2020. "Reforming Agricultural Policies Will Help to Improve Environmental Performance," EuroChoices, The Agricultural Economics Society, vol. 19(1), pages 30-35, April.
  • Handle: RePEc:bla:eurcho:v:19:y:2020:i:1:p:30-35
    DOI: 10.1111/1746-692X.12247
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    References listed on IDEAS

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    1. Kym Anderson & Gordon Rausser & Johan Swinnen, 2013. "Political Economy of Public Policies: Insights from Distortions to Agricultural and Food Markets," Journal of Economic Literature, American Economic Association, vol. 51(2), pages 423-477, June.
    2. Santiago Guerrero, 2018. "Farmland Birds under Pressure," EuroChoices, The Agricultural Economics Society, vol. 17(3), pages 24-25, December.
    3. Ben Henderson & Jussi Lankoski, 2019. "Evaluating the environmental impact of agricultural policies," OECD Food, Agriculture and Fisheries Papers 130, OECD Publishing.
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    Cited by:

    1. Kelly Parsons & David Barling, 2022. "England’s food policy coordination and the Covid-19 response," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 14(4), pages 1027-1043, August.
    2. Irina Pilvere & Aleksejs Nipers & Aija Pilvere, 2022. "Evaluation of the European Green Deal Policy in the Context of Agricultural Support Payments in Latvia," Agriculture, MDPI, vol. 12(12), pages 1-22, November.

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