Decentralisation of agri-environmental policy design

Francois Bareille and Matteo Zavalloni

European Review of Agricultural Economics, 2020, vol. 47, issue 4, 1502-1530

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 (search for similar items in EconPapers)
JEL-codes: H77 Q18 Q28 (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (6)

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