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European agri-environmental policy for the 21st century

  • Uwe Latacz-Lohmann

    (University of Cambridge, UK,)

  • Ian Hodge

The present paper reviews the development of agri-environmental policy in Europe and assesses its prospects. While it does so from a predominantly UK perspective, there are many common features of the experience and policy choices across the majority of Member States. The first generation of agri-environmental measures applied command-and-control regulation for the prevention of pollution. Second-generation measures pay farmers for providing environmental public goods. The emphasis on 'amenity' derived from the maintenance of agricultural production systems contrasts with policy approaches in Australia and the USA. Well-designed incentive schemes constitute 'quasi-markets' for public goods, correcting for a pre-existing market failure. Problems in the delivery of policy include poor spatial targeting and a lack of clarity between environmental and income support objectives. Various changes will be required in order to increase the environmental effectiveness and efficiency of agri-environmental mechanisms. Copyright 2003 Australian Agricultural and Resource Economics Society Inc. and Blackwell Publishing Ltd..

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Article provided by Australian Agricultural and Resource Economics Society in its journal The Australian Journal of Agricultural and Resource Economics.

Volume (Year): 47 (2003)
Issue (Month): 1 (03)
Pages: 123-139

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Handle: RePEc:bla:ajarec:v:47:y:2003:i:1:p:123-139
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  1. Slangen, L H G, 1992. "Policies for Nature and Landscape Conservation in Dutch Agriculture: An Evaluation of Objectives, Means, Effects and Programme Costs," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 19(3), pages 331-50.
  2. Ian Hodge, 2000. "Agri-environmental Pelationships and the Choice of Policy Mechanism," The World Economy, Wiley Blackwell, vol. 23(2), pages 257-273, 02.
  3. 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.
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