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Distortions in a multi-level co-financing system: the case of the agri-environmental programme of Saxony-Anhalt

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  • Kirschke, Dieter
  • Hager, Astrid
  • Jechlitschka, Kurt
  • Wegener, Stefan
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    Abstract

    In this paper we analyse the impact of the EU multi-level cofinancing system on regional policy-making and priority setting taking the case of the agri-environmental programme of Saxony-Anhalt. The implications of several co-financing scenarios are analysed and compared to respective lump-sum transfers using an interactive linear programming approach. The results reveal how regional choices on agri-environmental measures are influenced by the co-financing system leading to distortions. The extent of these distortions depends on the specific regional preferences and restrictions.

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    Bibliographic Info

    Article provided by Humboldt-Universitaet zu Berlin, Department for Agricultural Economics in its journal German Journal of Agricultural Economics.

    Volume (Year): 56 (2007)
    Issue (Month): 7 ()
    Pages:

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    Handle: RePEc:ags:gjagec:96754

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    Keywords: agri-environmental programmes; co-financing; federalism; interactive programming; policy-making; Agricultural and Food Policy; Environmental Economics and Policy;

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