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Evaluating the environmental impact of agricultural policies

Author

Listed:
  • Ben Henderson

    (OECD)

  • Jussi Lankoski

    (OECD)

Abstract

The relationship between agricultural support policies (adapted from the OECD Producer Support Estimate (PSE) classification) and a selection of environmental impacts are analysed in a range of country settings, using a farm-level and a market-level model. Based on the methods and environmental indicators used, market price support and payments based on unconstrained variable input use were the most environmentally harmful among the various PSE measures. Decoupled support payments based on non-current crop area were the least harmful, even when considering their impacts on the behaviour of risk averse farmers. The impacts of support policies that clearly change the competitiveness of one production activity in relation to another, such as payments based on current crop area or on animal numbers, were more equivocal. Support payments subject to environmental constraints can improve environmental outcomes compared to coupled support without restrictions, however, they can also have unintended environmental impacts.

Suggested Citation

  • Ben Henderson & Jussi Lankoski, 2019. "Evaluating the environmental impact of agricultural policies," OECD Food, Agriculture and Fisheries Papers 130, OECD Publishing.
  • Handle: RePEc:oec:agraaa:130-en
    DOI: 10.1787/add0f27c-en
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    Cited by:

    1. Astrida Miceikienė & Kristina Gesevičienė & Daiva Rimkuvienė, 2021. "Assessment of the Dependence of GHG Emissions on the Support and Taxes in the EU Countries," Sustainability, MDPI, vol. 13(14), pages 1-15, July.
    2. Jonathan Brooks & Céline Giner, 2021. "What Role Can Agricultural Policies Play in Encouraging Healthier Diets?," EuroChoices, The Agricultural Economics Society, vol. 20(3), pages 4-11, December.
    3. Gwen DeBoe & Koen Deconinck & Ben Henderson & Jussi Lankoski, 2020. "Reforming Agricultural Policies Will Help to Improve Environmental Performance," EuroChoices, The Agricultural Economics Society, vol. 19(1), pages 30-35, April.
    4. Jonathan Brooks, 2023. "Agricultural policies and food systems: Priorities for indicator development," Journal of Agricultural Economics, Wiley Blackwell, vol. 74(1), pages 3-23, February.
    5. 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.
    6. Stefano Ciliberti & Luca Palazzoni & Sofia Maria Lilli & Angelo Frascarelli, 2022. "Direct Payments to Provide Environmental Public Goods and Enhance Farm Incomes: Do Allocation Criteria Matter?," Review of Economics and Institutions, Università di Perugia, vol. 13(1-2).

    More about this item

    Keywords

    biodiversity; GHG; nitrogen runoff; nutrient balance; producer support;
    All these keywords.

    JEL classification:

    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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