Distortions in a Multi-Level Co-Financing System: The Case of the Agri-Environmental Program of Saxony-Anhalt

Dieter Kirschke, Astrid Hager, Kurt Jechlitschka and Stefan Wegener

No 25365, 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia from International Association of Agricultural Economists

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

Keywords: Environmental Economics and Policy; Financial Economics; Food Consumption/Nutrition/Food Safety (search for similar items in EconPapers)
Pages: 18
Date: 2006
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Persistent link: https://EconPapers.repec.org/RePEc:ags:iaae06:25365

DOI: 10.22004/ag.econ.25365

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