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Agri‐environmental Instruments for an Integrated Rural Policy: An Economic Analysis

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  • Eli Feinerman
  • Marinus H.C. Komen

Abstract

The new Rural Development Regulation of the EU reflects the shift of attention within rural areas from agricultural production towards rural development and embraces both farmers and non‐farm residents. While agricultural production is required to comply with environmental standards, rural areas also have to fulfil the growing demand for landscape, outdoor recreation and wildlife conservation. This paper develops a model of a rural area where farmers and non‐farm residents live together. A central government uses a combination of two‐policy instruments ‐ direct compensation payments and public services ‐ aimed at encouraging farmers to adopt environmentally beneficial practices and at the same time to increase the provision of countryside amenities and the sustained vitality of the rural area. The optimal mix of the policy instruments is evaluated under various governmental objectives. The analysis suggests that a combination of direct payments to farmers with the supply of local public services is a promising tool for rural policy development initiatives in the EU.

Suggested Citation

  • Eli Feinerman & Marinus H.C. Komen, 2003. "Agri‐environmental Instruments for an Integrated Rural Policy: An Economic Analysis," Journal of Agricultural Economics, Wiley Blackwell, vol. 54(1), pages 1-20, March.
    • Handle: RePEc:bla:jageco:v:54:y:2003:i:1:p:1-20
    DOI: 10.1111/j.1477-9552.2003.tb00045.x
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    Cited by:

    1. Campus, Daniela, 2014. "Evaluating agri-environmental schemes: the case of Tuscany," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182919, European Association of Agricultural Economists.
    2. Campus, Daniela, 2014. "Evaluating agri-environmental schemes. The case of Tuscany," 2014 Third Congress, June 25-27, 2014, Alghero, Italy 172969, Italian Association of Agricultural and Applied Economics (AIEAA).
    3. Bergmann, Holger & Noack, Eva Maria & Thomson, Kenneth J., 2011. "The Distribution of CAP Payments - Redistributional Injustice or Spatially Adapted policy?," 85th Annual Conference, April 18-20, 2011, Warwick University, Coventry, UK 108958, Agricultural Economics Society.
    4. Waltert, Fabian & Schläpfer, Felix, 2010. "Landscape amenities and local development: A review of migration, regional economic and hedonic pricing studies," Ecological Economics, Elsevier, vol. 70(2), pages 141-152, December.
    5. Fabian Waltert & Felix Schlaepfer, 2007. "The role of landscape amenities in regional development: a survey of migration, regional economic and hedonic pricing studies," SOI - Working Papers 0710, Socioeconomic Institute - University of Zurich.

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