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Assessing the Environmental Impacts of Agricultural Policies

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  • Benjamin Henderson
  • Jussi Lankoski

Abstract

This study investigates the potential impacts of a range of specific support measures on the environment, using farm and sector‐scale economic models, in a range of country settings. Market price support and payments based on unconstrained variable input use are found to be the most environmentally harmful among the various support policies assessed. In contrast, decoupled support payments based on noncurrent crop area are the least harmful. The impacts of support policies that directly change the competitiveness of one production activity in relation to another, such as payments based on current crop area or on animal numbers, are more equivocal.

Suggested Citation

  • Benjamin Henderson & Jussi Lankoski, 2021. "Assessing the Environmental Impacts of Agricultural Policies," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 43(4), pages 1487-1502, December.
    • Handle: RePEc:wly:apecpp:v:43:y:2021:i:4:p:1487-1502
    DOI: 10.1002/aepp.13081
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    References listed on IDEAS

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    1. Ben Henderson & Jussi Lankoski, 2019. "Evaluating the environmental impact of agricultural policies," OECD Food, Agriculture and Fisheries Papers 130, OECD Publishing.
    2. Phoebe Koundouri & Marita Laukkanen & Sami Myyrä & Céline Nauges, 2009. "The effects of EU agricultural policy changes on farmers' risk attitudes," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 36(1), pages 53-77, March.
    3. Jonathan A. Foley & Navin Ramankutty & Kate A. Brauman & Emily S. Cassidy & James S. Gerber & Matt Johnston & Nathaniel D. Mueller & Christine O’Connell & Deepak K. Ray & Paul C. West & Christian Balz, 2011. "Solutions for a cultivated planet," Nature, Nature, vol. 478(7369), pages 337-342, October.
    4. Roger Martini, 2011. "Long Term Trends in Agricultural Policy Impacts," OECD Food, Agriculture and Fisheries Papers 45, OECD Publishing.
    5. M'hand Fares & Jean-Joseph Minviel, 2017. "The role of decoupled subsidies in agriculture providing ecosystem services," Post-Print hal-03236184, HAL.
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    1. Adela Sorinela Safta & Dumitru Nancu & Lavinia Popescu, 2022. "Interoperability Of Sustainable Measures Under The Common Agricultural Policy," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 5, pages 86-94, October.
    2. Lavinia Popescu & Adela Sorinela Safta, 2024. "Sustainability From The Perspective Of Electromagnetic Waves - Global System For Mobile Communication," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 5, pages 249-258, October.

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