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Evaluating the Impact of Alternative Agricultural Policy Scenarios on Multifunctionality: A Case Study of Finland

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  • Lehtonen, Heikki
  • Lankoski, Jussi E.
  • Niemi, Jyrki S.

Abstract

This paper provides first results of the sector-model approach to analysing the effects of alternative policy scenarios on the multifunctional role of Finnish agriculture. In terms of environmental non-commodity outputs, this study focuses on nutrient runoffs, landscape diversity and biodiversity. As regards other non-commodity outputs, the paper considers rural socio-economic viability. The results suggest that, on the whole, reform of the common agricultural policy is not likely to result in any drastic decline of agricultural production in Finland. The amount of green fallow will increase considerably when agricultural support payments are decoupled from production, and as a result the remaining cultivated agricultural land will become biologically richer. The agricultural labour force is likely to decrease substantially irrespective of agricultural policy. The study concludes that the credibility of the production economics and biological relationships of the economic model determine the validity of the results of the many indicators examined. Further, the economic logic of microeconomic simulation models provides a consistent assessment of the many aspects of multifunctionality.

Suggested Citation

  • 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).
    • Handle: RePEc:ags:enarwp:25137
    DOI: 10.22004/ag.econ.25137
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    References listed on IDEAS

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    6. Ollikainen, Markku & Lankoski, Jussi E., 2005. "Multifunctional Agriculture: The Effect of Non-Public Goods on Socially Optimal Policies," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24611, European Association of Agricultural Economists.
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    2. 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.
    3. Zimmermann, Albert, 2008. "Combination of the Swiss agrarian sector model SILAS-dyn with the life cycle assessment tool SALCA," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6603, European Association of Agricultural Economists.

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