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Distortions in a Multi-Level Co-Financing System: The Case of the Agri-Environmental Program of Saxony-Anhalt

Author

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  • Kirschke, Dieter
  • Hager, Astrid
  • Jechlitschka, Kurt
  • Wegener, Stefan

Abstract

In this paper we analyze the impact of the EU multi-level co-financing system on regional policy-making and priority setting taking the case of the agri-environmental program of Saxony-Anhalt in Germany. The implications of several co-financing scenarios are analyzed and compared to respective lump-sum transfers using an interactive linear programming approach. The results reveal that regional choices on agri-environmental measures are strongly influenced by the co-financing system leading to distortions. The extent of these distortions depends on the specific regional preferences and restrictions to be considered in the policy-making process.

Suggested Citation

  • Kirschke, Dieter & Hager, Astrid & Jechlitschka, Kurt & Wegener, Stefan, 2006. "Distortions in a Multi-Level Co-Financing System: The Case of the Agri-Environmental Program of Saxony-Anhalt," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25365, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae06:25365
    DOI: 10.22004/ag.econ.25365
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    Cited by:

    1. Jussila Hammes , Johanna & Mandell , Svante, 2016. "Districts’ co-financing of the central government," Working papers in Transport Economics 2016:12, CTS - Centre for Transport Studies Stockholm (KTH and VTI).

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