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Cost-Effectiveness Evaluation of Swiss Agri-Environmental Measures on Sector Level

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  • Schader, Christian
  • Sanders, Jurn
  • Offermann, Frank
  • Lampkin, Nicolas
  • Stolze, Matthias
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    Abstract

    This paper focuses on non-linear programming models and their suitability for ex-ante evaluations of agri-environmental policies on sector level. An approach is presented to compare organic farming payments as a multi-objective policy, with other, more targeted agri-environmental policies in Switzerland. The Swiss version of the comparative static sector-consistent farm group model FARMIS is able to group the sector’s farms into organic and non-organic farms and optimise them separately. CH-FARMIS is expanded with three modules particularly for this study: a) allowing for the simulation of uptake; b) integrating life cycle assessment data for energy use, eutrophication and biodiversity; and c) estimating the policy and farm-group-specific public expenditure, including transaction costs. This paper illustrates the functions of the model, shows preliminary energy use calculations for the German Agricultural Sector and discusses the advantages and limitations of the approach.

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    Bibliographic Info

    Paper provided by European Association of Agricultural Economists in its series 107th Seminar, January 30-February 1, 2008, Sevilla, Spain with number 6604.

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    Date of creation: 2008
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    Handle: RePEc:ags:eaa107:6604

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    Related research

    Keywords: positive mathematical programming; life cycle assessment; organic farming; environmental indicators; economic efficiency; Agricultural and Food Policy; Farm Management; Research Methods/ Statistical Methods;

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    1. Per Kristian Rørstad & Arild Vatn & Valborg Kvakkestad, 2007. "Why do transaction costs of agricultural policies vary?," Agricultural Economics, International Association of Agricultural Economists, vol. 36(1), pages 1-11, 01.
    2. Ottmar R�hm & Stephan Dabbert, 2003. "Integrating Agri-Environmental Programs into Regional Production Models: An Extension of Positive Mathematical Programming," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(1), pages 254-265.
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    Cited by:
    1. Pavel Ciaian & Tomáš Ratinger, 2009. "Income Distribution Effects of EU Rural Development Policies: The Case of Farm Investment Support," EERI Research Paper Series EERI_RP_2009_01, Economics and Econometrics Research Institute (EERI), Brussels.

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