EconPapers    
Economics at your fingertips  
 

Agri-environmental externalities: a framework for designing targeted policies

Jussi Lankoski () and Markku Ollikainen

European Review of Agricultural Economics, 2003, vol. 30, issue 1, 51-75

Abstract: The optimal provision of agri-environmental externalities is studied in a model of endogenous input use and land allocation augmented by their effects on biodiversity, landscape diversity and nutrient runoffs. Whereas biodiversity and landscape diversity are public good aspects of agriculture, nutrient runoffs are negative externalities. We show that fertiliser use is higher and the size of buffer strips lower at the private optimum than at the social optimum. The socially optimal land allocation differs from the private solution as a result of the valuation of diversity benefits and runoff damages. The socially optimal policy under heterogeneous land quality involves a differentiated fertiliser tax and a differentiated buffer strip subsidy. We use Finnish data to characterise empirically the socially optimal design of policy instruments. Copyright 2003, Oxford University Press.

Date: 2003
References: Add references at CitEc
Citations: View citations in EconPapers (49) Track citations by RSS feed

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:oup:erevae:v:30:y:2003:i:1:p:51-75

Ordering information: This journal article can be ordered from
http://www.oup.co.uk/journals

Access Statistics for this article

European Review of Agricultural Economics is currently edited by Christoph Weiss, Thomas Heckelei and Paolo Sckokai

More articles in European Review of Agricultural Economics from Foundation for the European Review of Agricultural Economics Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK. Contact information at EDIRC.
Bibliographic data for series maintained by Oxford University Press ().

 
Page updated 2019-07-27
Handle: RePEc:oup:erevae:v:30:y:2003:i:1:p:51-75