Distortions in a multi-level co-financing system: the case of the agri-environmental programme of Saxony-Anhalt

Dieter Kirschke, Astrid Hager, Kurt Jechlitschka and Stefan Wegener

German Journal of Agricultural Economics, 2007, vol. 56, issue 07, 8

Abstract: In this paper we analyse the impact of the EU multi-level cofinancing system on regional policy-making and priority setting taking the case of the agri-environmental programme of Saxony-Anhalt. The implications of several co-financing scenarios are analysed and compared to respective lump-sum transfers using an interactive linear programming approach. The results reveal how regional choices on agri-environmental measures are influenced by the co-financing system leading to distortions. The extent of these distortions depends on the specific regional preferences and restrictions.

Keywords: Agricultural and Food Policy; Environmental Economics and Policy (search for similar items in EconPapers)
Date: 2007
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Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:gjagec:96754

DOI: 10.22004/ag.econ.96754

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