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Environmental protection of agriculture -clash of policies?

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  • Helin, Janne

Abstract

Agricultural primary production is extensively influenced by policies and regulation. On the level of European Union the common agricultural policy (CAP), frames the production environment. This study analyses the conflict of environmental and income policies in the context of CAP reform, eutrophication, the Water Framework Directive and Finnish policies. As targets of the policies do not coincide and often conflict, the environmental problems of farming have not been solved in the past decades. The comparative analysis is conducted quantitatively under static non-linear optimisation framework of representative farms of cereal and milk production regions of Finland. The results indicate that the decoupling of subsidies from production has enabled more efficient abatement policy. The current policies are still far away from the first best abatement solution. According to the results, main policy failures lie in uniform instruments, which even on a national level ignore the heterogeneous farm structures and environmental conditions. Instead of providing tailored instruments for nutrient load problems, the reform of Finnish agri-environmental subsidy scheme fails to respond to growth trends of nutrient loads on animal intensive regions.

Suggested Citation

  • Helin, Janne, 2008. "Environmental protection of agriculture -clash of policies?," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6468, European Association of Agricultural Economists.
  • Handle: RePEc:ags:eaa107:6468
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    File URL: http://purl.umn.edu/6468
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    References listed on IDEAS

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    1. Robert Innes, 2000. "The Economics of Livestock Waste and Its Regulation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(1), pages 97-117.
    2. Baylis, Kathy & Peplow, Stephen & Rausser, Gordon & Simon, Leo, 2008. "Agri-environmental policies in the EU and United States: A comparison," Ecological Economics, Elsevier, vol. 65(4), pages 753-764, May.
    3. Koikkalainen, Kauko & Laukkanen, Marita & Helin, Janne, 2006. "Abatement costs for agricultural nitrogen and phosphorus loads: a case study of South-Western Finland," Discussion Papers 11867, MTT Agrifood Research Finland.
    4. Brady, Mark, 2003. "Managing agriculture and water quality," Department of Economics publications 217, Swedish University of Agricultural Sciences, Department of Economics.
    5. Rabinowicz, Ewa, 1999. "Redesigning the CAP to Meet the Challenges of EU Enlargement and the WTO: What Can Agricultural Economic Research Contribute?," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 26(3), pages 265-281, August.
    6. Lehtonen, Heikki & Lankoski, Jussi E. & Niemi, Jyrki S. & Ollikainen, Markku, 2005. "The Impacts of Alternative Policy Scenarios on Multifunctionality," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24459, European Association of Agricultural Economists.
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