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The economic sustainability of agri-environmental policies: the application of Reg. (EC) N. 1095/2007 in the rice sector

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  • Gaviglio, Anna
  • Demartini, Eugenio
  • Pirani, Alberto

Abstract

Positive Mathematical Programming represents a useful tool for agri-environmental policy planning. This paper estimates the consequences of the application of the Regulation (EC) 1095/2007, relating to the ban on the use of the active agent Tricyclazole, which is normally employed to combat rice blast. The main objective is to quantify the variation in farmers’ revenues and the change in use of land, in response to variations in the yield of rice produced and its production costs. The research has been focussed on the rice-farming sector in the Parco Agricolo Sud Milano (PASM), a sub-urban agricultural area of the regional capital of Lombardy that, since 1990, has been a protected area and has been under the management of the Province of Milan. The data for the case study was collected in situ and combined with the data from the Agriculture Databank of Lombardy Region considering a sample of farms representative of the rice-farming sector in the PASM. The study present the results of simulations of ten different sce-narios with a view to evaluating the overall sustainability of the cautionary measures introduced.

Suggested Citation

  • Gaviglio, Anna & Demartini, Eugenio & Pirani, Alberto, . "The economic sustainability of agri-environmental policies: the application of Reg. (EC) N. 1095/2007 in the rice sector," Politica Agricola Internazionale - International Agricultural Policy, Edizioni L'Informatore Agrario, vol. 2012(2), pages 1-11.
    • Handle: RePEc:ags:eiapai:139665
    DOI: 10.22004/ag.econ.139665
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    1. Schader, Christian & Sanders, Jurn & Offermann, Frank & Lampkin, Nicolas & Stolze, Matthias, 2008. "Cost-Effectiveness Evaluation of Swiss Agri-Environmental Measures on Sector Level," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6604, European Association of Agricultural Economists.
    2. Heckelei, Thomas & Britz, Wolfgang, 2000. "Positive Mathematical Programming with Multiple Data Points: A Cross-Sectional Estimation Procedure," Cahiers d'Economie et de Sociologie Rurales (CESR), Institut National de la Recherche Agronomique (INRA), vol. 57.
    3. Wilson, Clevo & Tisdell, Clem, 2001. "Why farmers continue to use pesticides despite environmental, health and sustainability costs," Ecological Economics, Elsevier, vol. 39(3), pages 449-462, December.
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