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Co-financing Implications for Regional Policy-Making: A Case Study for the Agri-environmental Programme in Saxony-Anhalt

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Author Info
Kirschke, Dieter
Hager, Astrid
Jechlitschka, Kurt
Wegener, Stefan
Abstract

Financing agri-environmental programmes in the European Union (EU) takes place in a multi-level system with mixed co-financing and shared financial responsibilities. In this paper we analyse how co-financing influences policy-making in regions taking the case of the agri-environmental programme in Saxony-Anhalt. Using an interactive linear programming approach the implications of several co-financing scenarios are analysed. EU co-financing certainly enhances the financial volume for the agri-environmental programme in Saxony-Anhalt; but as regional policy-making is distorted by the scheme of mixed co-financing as compared to unconditional financial transfers, the priorities for measures vary depending on different EU co-financing scenarios.

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Paper provided by Humboldt University Berlin, Institute for Agricultural Economic and Social Sciences in its series Structural Change and Transition in the Agricultural Sector Working Papers with number 18814.

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Date of creation: 2005
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Handle: RePEc:ags:huiasc:18814

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

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  1. Olson, Mancur, Jr, 1969. "The Principle of "Fiscal Equivalence": The Division of Responsibilities among Different Levels of Government," American Economic Review, American Economic Association, vol. 59(2), pages 479-87, May. [Downloadable!] (restricted)
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