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A Modelling Approach for Evaluating Agri-Environmental Policies at Sector Level

Christian Schader, Jürn Sanders, Thomas Nemecek, Nic Lampkin and Matthias Stolze
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Christian Schader: Institute of Organic Agriculture (FiBL)
Jürn Sanders: Johann-Heinrich von Thünen Institut (vTI)
Thomas Nemecek: Agroscope
Nic Lampkin: Institute of Biological, Environmental and Rural Sciences, Aberystwyth
Matthias Stolze: Institute of Organic Agriculture (FiBL)

Journal of Socio-Economics in Agriculture (Until 2015: Yearbook of Socioeconomics in Agriculture), 2008, vol. 1, issue 1, 93-132

Abstract: This paper presents a new approach to evaluate the cost effectiveness of agri-environmental policies at sector level. Policy uptake, cumulative environmental effects and public expenditure are identified as the main determinants of cost-effectiveness. On the basis of the sector-consistent, comparative-static, farm group model FARMIS, the determinants of policy cost-effectiveness at sector level are addressed. Firstly, intensity levels for the FARMIS activities are defined in order to model uptake of agri-environmental policies with FARMIS, secondly, life-cycle assessment data is attached to these intensity levels to determine environmental effects of the policies and thirdly, public expenditure is calculated under consideration of transaction costs. This paper concludes delineating the strengths and limitations of the approach.

Keywords: positive mathematical programming; life-cycle assessment; organic farming; uptake rate; environmental indicators; economic efficiency (search for similar items in EconPapers)
JEL-codes: Q12 Q18 Q57 (search for similar items in EconPapers)
Date: 2008
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Citations: View citations in EconPapers (1)

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