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Decentralisation of agri-environmental policy design

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  • François Bareille
  • Matteo Zavalloni

Abstract

We theoretically examine the gains of the decentralisation of agri-environmental policy design. We consider a model with homogeneous regions and joint production of local and global public goods from agriculture. Assuming that governments are characterised by different agency costs and knowledge of the PG values, we evaluate whether decentralisation is a suitable strategy to improve the efficiency of agri-environmental payments. We find that partial decentralisation always improves the welfare. We apply our theoretical model to the case of abandoned wetlands in Brittany. We find that national governments are the most suitable to design agri-environmental policies. Our results contribute to reflections on future Common Agricultural Policy.

Suggested Citation

  • François Bareille & Matteo Zavalloni, 2020. "Decentralisation of agri-environmental policy design," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 47(4), pages 1502-1530.
    • Handle: RePEc:oup:erevae:v:47:y:2020:i:4:p:1502-1530.
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    File URL: http://hdl.handle.net/10.1093/erae/jbz049
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    Cited by:

    1. Pagliacci, Francesco & Zavalloni, Matteo, 2024. "The political economy determinants of agrienvironmental funds in the European Rural Development Programmes," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 13(2), July.
    2. Bourceret, Amélie & Amblard, Laurence & Mathias, Jean-Denis, 2022. "Adapting the governance of social–ecological systems to behavioural dynamics: An agent-based model for water quality management using the theory of planned behaviour," Ecological Economics, Elsevier, vol. 194(C).
    3. Kelemen, Eszter & Megyesi, Boldizsár & Matzdorf, Bettina & Andersen, Erling & van Bussel, Lenny G.J. & Dumortier, Myriam & Dutilly, Céline & García-Llorente, Marina & Hamon, Christine & LePage, Annabe, 2023. "The prospects of innovative agri-environmental contracts in the European policy context: Results from a Delphi study," Land Use Policy, Elsevier, vol. 131(C).
    4. Hecker, Lutz Philip & Sturm, Astrid & Querhammer, Lisa & Wätzold, Frank, 2024. "Cost-effectiveness of state-dependent versus state-independent agri-environment schemes for biodiversity conservation," Ecological Economics, Elsevier, vol. 217(C).
    5. Drechsler, Martin & Wätzold, Frank & Grimm, Volker, 2022. "The hitchhiker's guide to generic ecological-economic modelling of land-use-based biodiversity conservation policies," Ecological Modelling, Elsevier, vol. 465(C).
    6. François Bareille & Matteo Zavalloni, 2020. "Decentralisation of agri-environmental policy design," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 47(4), pages 1502-1530.

    More about this item

    Keywords

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    JEL classification:

    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism

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