Agri-environmental Policy in the European Union: Who's in Charge?
AbstractThe EU has argued that some agricultural subsidies are needed to provide the optimal amount of externalities (both positive and negative) produced by agriculture. The argument is that agriculture is "multifunctional" and externalities such as rural development and landscape would be underproduced, while some forms of pollution (such as nitrogen runoff) would be overproduced without government intervention. Meanwhile, the United States has raised the concern that multifunctionality is primarily an argument to transfer income to producers. One way to try and determine how much of these non-commodity payments are directed to externalities and how much is intended to distribute income to producers is to analyze the variation of the programs among the different member states of the EU. We estimate the degree to which environmental characteristics, agricultural characteristics and political economy variables determine the objective and amount of funding each member states uses to address environmental externalities (both positive and negative). Results indicate that little of the variance in agri-environmental expenditure can be explained by the difference in negative externalities, neither is there clear evidence that the payments are substituting for traditional agricultural subsidies. However, demand for environmental services and political variables seem to be the driving motivators behind a country's decision to spend money on agri-environmental programs.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Canadian Agricultural Trade Policy Research Network in its series Commissioned Papers with number 24162.
Date of creation: 2006
Date of revision:
Environmental Economics and Policy;
Other versions of this item:
- Baylis, Katherine R. & Peplow, Stephen & Rausser, Gordon C. & Simon, Leo K., 2006. "Agri-environmental Policy in the European Union: Who's in Charge?," Trade Policy Briefs 24149, Canadian Agricultural Trade Policy Research Network.
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Bertoni, Danilo & Olper, Alessandro, 2008. "The Political Economy of EU Agri-environmental measures: An empirical Assessment at the Regional Level," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44435, European Association of Agricultural Economists.
- Katona-Kovacs, Judit, 2008. "Analysis of agri-environmental measures in Hungary â€“ a regional perspective," Studies in Agricultural Economics, Research Institute for Agricultural Economics, issue 107, March.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search).
If references are entirely missing, you can add them using this form.