Decentralisation of agri-environmental policy design

Décentralisation de la conception des politiques agro-environnementales

Francois Bareille and Matteo Zavalloni
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Matteo Zavalloni: Department of Agricultural and Food Sciences - UNIBO - Alma Mater Studiorum Università di Bologna = University of Bologna

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Abstract: We theoretically examine the gains of the decentralisation of agri-environmental policy design. We consider a model with homogeneous regions and joint production of local and global public goods from agriculture. Assuming that governments are characterised by different agency costs and knowledge of the PG values, we evaluate whether decentralisation is a suitable strategy to improve the efficiency of agri-environmental payments.We find that partial decentralisation always improves the welfare.We apply our theoretical model to the case of abandoned wetlands in Brittany. We find that national governments are the most suitable to design agri-environmental policies. Our results contribute to reflections on future Common Agricultural Policy.

Keywords: Common Agricultural Policy reform; Environmental federalism; Public goods; Subsidiarité (search for similar items in EconPapers)
Date: 2020
New Economics Papers: this item is included in nep-agr and nep-env
Note: View the original document on HAL open archive server: https://hal.inrae.fr/hal-02629239v1
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Citations: View citations in EconPapers (5)

Published in European Review of Agricultural Economics, 2020, 47 (4), pp.1502-1530. ⟨10.1093/erae/jbz049⟩

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Journal Article: Decentralisation of agri-environmental policy design (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-02629239

DOI: 10.1093/erae/jbz049

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