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Efficiency of Rural Conservation and Supply Control Policies

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  • Russell, Noel P

Abstract

This paper examines the technical and economic efficiency of popular European agricultural policy instruments within a framework that carefully specifies the trade-offs between agriculture and the rural environment. Instruments that focus primarily on supply control are technically inefficient, since they do not take advantage of potential complementarity between reducing agricultural output and increasing output of rural environmental goods and services. Thus recently agreed-upon CAP reforms will not achieve their potential contribution to agri-environmental efficiency under current implementation proposals. The first-best social optimum might be approached, without dismantling existing supports, using a type of cross-compliance policy. Copyright 1993 by Oxford University Press.

Suggested Citation

  • Russell, Noel P, 1993. "Efficiency of Rural Conservation and Supply Control Policies," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 20(3), pages 315-326.
    • Handle: RePEc:oup:erevae:v:20:y:1993:i:3:p:315-26
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    Cited by:

    1. Wossink, Ada & Swinton, Scott M., 2007. "Jointness in production and farmers' willingness to supply non-marketed ecosystem services," Ecological Economics, Elsevier, vol. 64(2), pages 297-304, December.
    2. Romstad, Eirik, 2009. "Ambiguous jointness and multifunctionality," 2009 Conference, August 16-22, 2009, Beijing, China 51539, International Association of Agricultural Economists.
    3. Signe Anthon & Serge Garcia & Anne Stenger, 2006. "Incentive Contracts for Natura 2000 Implementation: A Mixed Model of Adverse Selection and Moral Hazard," Working Papers - Cahiers du LEF 2006-06, Laboratoire d'Economie Forestiere, AgroParisTech-INRA.

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