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A Modelling Approach for Evaluating Agri-Environmental Policies at Sector Level

Author

Listed:
  • Christian Schader

    (Institute of Organic Agriculture (FiBL))

  • Jürn Sanders

    (Johann-Heinrich von Thünen Institut (vTI))

  • Thomas Nemecek

    (Agroscope)

  • Nic Lampkin

    (Institute of Biological, Environmental and Rural Sciences, Aberystwyth)

  • Matthias Stolze

    (Institute of Organic Agriculture (FiBL))

Abstract

This paper presents a new approach to evaluate the cost effectiveness of agri-environmental policies at sector level. Policy uptake, cumulative environmental effects and public expenditure are identified as the main determinants of cost-effectiveness. On the basis of the sector-consistent, comparative-static, farm group model FARMIS, the determinants of policy cost-effectiveness at sector level are addressed. Firstly, intensity levels for the FARMIS activities are defined in order to model uptake of agri-environmental policies with FARMIS, secondly, life-cycle assessment data is attached to these intensity levels to determine environmental effects of the policies and thirdly, public expenditure is calculated under consideration of transaction costs. This paper concludes delineating the strengths and limitations of the approach.

Suggested Citation

  • Christian Schader & Jürn Sanders & Thomas Nemecek & Nic Lampkin & Matthias Stolze, 2008. "A Modelling Approach for Evaluating Agri-Environmental Policies at Sector Level," Journal of Socio-Economics in Agriculture (Until 2015: Yearbook of Socioeconomics in Agriculture), Swiss Society for Agricultural Economics and Rural Sociology, vol. 1(1), pages 93-132.
    • Handle: RePEc:cha:ysa001:v:1:y:2008:i:1:p:93-132
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    More about this item

    Keywords

    positive mathematical programming; life-cycle assessment; organic farming; uptake rate; environmental indicators; economic efficiency;
    All these keywords.

    JEL classification:

    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics

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