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Intervention in Agricultural Systems that Provide Positive Environmental Externalities: an Evaluation of Alternative Instruments

  • Atance Muniz, Ignacio
  • Bardaji, Isabel
  • Tio, Carlos
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    The Common Agricultural Policy (CAP) intervenes in most agricultural systems that provide positive environmental externalities using both direct payments and agrienvironmental schemes. In this context, the objective of this paper is to compare the efficiency of the current intervention system versus intervening using agri-environmental payments as a sole instrument. The cereal steppes agroecosystem of Tierra de Campos (Valladolid, Spain) has been selected to develop this comparison. A farm survey and a Positive Mathematical Programming Model have been combined to provide results of both alternative instruments. The farm survey was used to ask the farmers their payments demands to participate in the alternative instrument, supplying also qualitative information about how it is perceived by farmers. The payments demanded were simulated in the model to get environmental and economic indicators for both instruments. Instruments were evaluated using a cost-effectiveness approach were total public expenditure was conserved constant for both. The main conclusion of this research is that policy intervention effectiveness could be potentially increased using an agri-environmental scheme as the unique intervention instrument. Considering this finding, results transferability to other agricultural systems and policy consequences in the context of the CAP are finally discussed.

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    File URL: http://purl.umn.edu/24810
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    Paper provided by European Association of Agricultural Economists in its series 2002 International Congress, August 28-31, 2002, Zaragoza, Spain with number 24810.

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    Date of creation: 2002
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    Handle: RePEc:ags:eaae02:24810
    Contact details of provider: Web page: http://www.eaae.org
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    1. Kline, Jeffrey & Wichelns, Dennis, 1996. "Measuring Public Preferences for the Environmental Amenities Provided by Farmland," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 23(4), pages 421-36.
    2. Nick Hanley & Hilary Kirkpatrick & Ian Simpson & David Oglethorpe, 1998. "Principles for the Provision of Public Goods from Agriculture: Modeling Moorland Conservation in Scotland," Land Economics, University of Wisconsin Press, vol. 74(1), pages 102-113.
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