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Environmental protection of agriculture -clash of policies?

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  • Helin, Janne
Abstract
Agricultural primary production is extensively influenced by policies and regulation. On the level of European Union the common agricultural policy (CAP), frames the production environment. This study analyses the conflict of environmental and income policies in the context of CAP reform, eutrophication, the Water Framework Directive and Finnish policies. As targets of the policies do not coincide and often conflict, the environmental problems of farming have not been solved in the past decades. The comparative analysis is conducted quantitatively under static non-linear optimisation framework of representative farms of cereal and milk production regions of Finland. The results indicate that the decoupling of subsidies from production has enabled more efficient abatement policy. The current policies are still far away from the first best abatement solution. According to the results, main policy failures lie in uniform instruments, which even on a national level ignore the heterogeneous farm structures and environmental conditions. Instead of providing tailored instruments for nutrient load problems, the reform of Finnish agri-environmental subsidy scheme fails to respond to growth trends of nutrient loads on animal intensive regions.

Suggested Citation

  • Helin, Janne, 2008. "Environmental protection of agriculture -clash of policies?," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6468, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaa107:6468
    DOI: 10.22004/ag.econ.6468
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    References listed on IDEAS

    as
    1. Baylis, Kathy & Peplow, Stephen & Rausser, Gordon & Simon, Leo, 2008. "Agri-environmental policies in the EU and United States: A comparison," Ecological Economics, Elsevier, vol. 65(4), pages 753-764, May.
    2. Lehtonen, Heikki & Lankoski, Jussi E. & Niemi, Jyrki S., 2005. "Evaluating the Impact of Alternative Agricultural Policy Scenarios on Multifunctionality: A Case Study of Finland," ENARPRI Working Papers 25137, European Network of Agricultural and Rural Policy Research Institutes (ENARPRI).
    3. Robert Innes, 2000. "The Economics of Livestock Waste and Its Regulation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(1), pages 97-117.
    4. Koikkalainen, Kauko & Laukkanen, Marita & Helin, Janne, 2006. "Abatement costs for agricultural nitrogen and phosphorus loads: a case study of South-Western Finland," Discussion Papers 11867, MTT Agrifood Research Finland.
    5. Heikki Lehtonen & Jussi Lankoski & Jyrki Niemi, 2005. "Evaluating the Impact of Alternative Policy Scenarios on Multifunctionality: A Case Study of Finland," ENARPRI Working Papers 013, ENARPRI (European Network of Agricultural and Rural Policy Research Institutes).
    6. Rabinowicz, Ewa, 1999. "Redesigning the CAP to Meet the Challenges of EU Enlargement and the WTO: What Can Agricultural Economic Research Contribute?," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 26(3), pages 265-281, August.
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    Keywords

    Agricultural and Food Policy; Agricultural Finance; Crop Production/Industries; Environmental Economics and Policy; Livestock Production/Industries;
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