1887

Guidelines for Cost-effective Agri-environmental Policy Measures

image of Guidelines for Cost-effective Agri-environmental Policy Measures

Improving the environmental performance of agriculture is a high priority in OECD and many non-OECD countries. This will be of increasing concern in the future given the pressure to feed a growing world population with scarce land and water resources. Policy has an important role to play where markets for many of the environmental outcomes from agriculture are absent or poorly functioning.   

This study focuses on the design and implementation of environmental standards and regulations, taxes, payments and tradable permit schemes to address agri-environmental issues. It deals with the choice of policy instruments and the design of specific instruments, with the aim of identifying those that are most cost-effective in very different situations across OECD countries.  

Key conclusions from the study are that: there is no unique instrument that promises to achieve all agri-environmental policy goals; the cost effectiveness of payments systems could be improved by using performance-based measures; and policy mixes need to combine policy instruments that complement and not conflict with each other.

English French

.

Annex C

Standards versus taxes

The concern about performance standards meeting overall environmental goals, at least without additional instruments, arises because performance standards conventionally limit only one of two variables that determine ambient environmental conditions (e.g. Sterner, 2003). To illustrate, in a linear water quality model, the ambient concentration of a pollutant in the environment (a) is a weighted sum of the polluting emissions from individual sources (ei, i = 1, 2, …, m), where the weight (..i, also known as a pollutant delivery or transport coefficient) applicable to an individual source is the proportion of its emissions that affect the ambient concentration...

English French

This is a required field
Please enter a valid email address
Approval was a Success
Invalid data
An Error Occurred
Approval was partially successful, following selected items could not be processed due to error