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On The Coordination Of The European Agri-Environmental And Water Internalizing Policies

Author

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  • Elsa Martin

    () (GREQAM - Groupement de Recherche en Économie Quantitative d'Aix-Marseille - ECM - Ecole Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique - AMU - Aix Marseille Université - EHESS - École des hautes études en sciences sociales)

  • Hubert Stahn

    (GREQAM - Groupement de Recherche en Économie Quantitative d'Aix-Marseille - ECM - Ecole Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique - AMU - Aix Marseille Université - EHESS - École des hautes études en sciences sociales)

Abstract

The point of departure of this work is the lack of coordination of European environmental internalizing policies. At the national level, while the water authority generally has to internalize the negative externalities of water extraction, the agricultural one aims at encouraging environmentally friendly one. More locally, considering an aquifer as being the only vector of environmental effects, we show that the externalities occurring can compensate themselves in such a way that the open-loop Nash game played by the two distinct authorities in charge of these policies is inefficient. In this special case, we propose to implement a coordinated policy based on a double fiscal scheme also showed budget balanced.

Suggested Citation

  • Elsa Martin & Hubert Stahn, 2009. "On The Coordination Of The European Agri-Environmental And Water Internalizing Policies," Working Papers halshs-00360993, HAL.
  • Handle: RePEc:hal:wpaper:halshs-00360993
    Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00360993
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    References listed on IDEAS

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    1. Just, Richard E & Antle, John M, 1990. "Interactions between Agricultural and Environmental Policies: A Conceptual Framework," American Economic Review, American Economic Association, vol. 80(2), pages 197-202, May.
    2. Horan, Richard D. & Shortle, James S. & Abler, David G., 2004. "The Coordination and Design of Point-Nonpoint Trading Programs and Agri-Environmental Policies," Agricultural and Resource Economics Review, Cambridge University Press, vol. 33(01), pages 61-78, April.
    3. Marca Weinberg & Catherine L. Kling, 1996. "Uncoordinated Agricultural and Environmental Policy Making: An Application to Irrigated Agriculture in the West," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(1), pages 65-78.
    4. Rubio, Santiago J. & Casino, Begona, 2001. "Competitive versus efficient extraction of a common property resource: The groundwater case," Journal of Economic Dynamics and Control, Elsevier, vol. 25(8), pages 1117-1137, August.
    5. Jeffrey M. Peterson & Richard N. Boisvert & Harry de Gorter, 2002. "Environmental policies for a multifunctional agricultural sector in open economies," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 29(4), pages 423-443, December.
    6. Hrubovcak, James & LeBlanc, Michael & Miranowski, John, 1990. "Limitations in Evaluating Environmental and Agricultural Policy Coordination Benefits," American Economic Review, American Economic Association, vol. 80(2), pages 208-212, May.
    7. José A. Gómez-Limón & Manuel Arriaza & Julio Berbel, 2002. "Conflicting Implementation of Agricultural and Water Policies in Irrigated Areas in the EU," Journal of Agricultural Economics, Wiley Blackwell, vol. 53(2), pages 259-281.
    8. Provencher Bill & Burt Oscar, 1993. "The Externalities Associated with the Common Property Exploitation of Groundwater," Journal of Environmental Economics and Management, Elsevier, vol. 24(2), pages 139-158, March.
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    Keywords

    water policy; agricultural policy; externalities;

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