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Improving the design of agri-environmental policies: a case study in Italy

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  • Bazzani, Guido Maria
  • Viaggi, Davide

Abstract

The application of agri-environmental policies (reg. EEC 2078/92 and reg. EU 1257/99) has produced a wide literature about the best policy design options. The data arising from the first ex post evaluation exercises have contributed only partially to the discussion about how such measures should be implemented. This paper simulates the results of different policy design options under adverse selection and moral hazard using data obtained from the monitoring of regulation 2078/92 in Emilia-Romagna (Italy). The results show the interplay between policy instruments, monitoring costs and payments. As a consequence a more consistent design of such policy parameters is required.

Suggested Citation

  • Bazzani, Guido Maria & Viaggi, Davide, 2004. "Improving the design of agri-environmental policies: a case study in Italy," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 5(2), August.
  • Handle: RePEc:ags:aergaa:26409
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    References listed on IDEAS

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    1. Andrew Moxey & Ben White & Adam Ozanne, 1999. "Efficient Contract Design for Agri-Environment Policy," Journal of Agricultural Economics, Wiley Blackwell, vol. 50(2), pages 187-202.
    2. Uwe Latacz-Lohmann & Carel P. C. M. Hamsvoort, 1998. "Auctions as a Means of Creating a Market for Public Goods from Agriculture," Journal of Agricultural Economics, Wiley Blackwell, vol. 49(3), pages 334-345.
    3. C. Choe & I. Fraser, 1998. "A Note on Imperfect Monitoring of Agri-Environmental Policy," Journal of Agricultural Economics, Wiley Blackwell, vol. 49(2), pages 250-258.
    4. Chongwoo Choe & Iain Fraser, 1999. "Compliance Monitoring and Agri-Environmental Policy," Journal of Agricultural Economics, Wiley Blackwell, vol. 50(3), pages 468-487.
    5. Katherine Falconer & Pierre Dupraz & Martin Whitby, 2001. "An Investigation of Policy Administrative Costs Using Panel Data for the English Environmentally Sensitive Areas," Journal of Agricultural Economics, Wiley Blackwell, vol. 52(1), pages 83-103.
    6. Uwe Latacz-Lohmann & Carel Van der Hamsvoort, 1997. "Auctioning Conservation Contracts: A Theoretical Analysis and an Application," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(2), pages 407-418.
    7. Ozanne, Adam & White, Benedict, 2003. "Agri-environment Policy Design With Hidden Information and Hidden Action: Input Quotas vs Input Charges," 2003 Conference (47th), February 12-14, 2003, Fremantle, Australia 58196, Australian Agricultural and Resource Economics Society.
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    Keywords

    Environmental Economics and Policy;

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