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Public Goods and Externalities

Agri-environmental Policy Measures in Selected OECD Countries

image of Public Goods and Externalities

Agriculture is a provider of commodities such as food, feed, fibre and fuel, and it can bring both positive and negative impacts on the environment. Yet most policy measures target farm systems, inputs and practices and agricultural infrastructure (driving forces) rather than the provision of agri-environmental public goods (environmental outcomes).

This report analyses how a handful of OECD countries (Australia, Canada, Japan, United Kingdom and the United States) defines agri-environmental public goods and sets agri-environmental targets and reference levels, and the policies they implement for targeting certain agri-environmental public goods.

English

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Market failure associated with agri-environmental public goods

This chapter analyses how countries estimate demand and supply of agri-environmental public goods, and how they examine whether market failures associated with the agrienvironmental public goods exist. It discusses the importance of identifying the extent farmers can voluntarily provide agri-environmental public goods without government intervention.

English

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