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Should we promote grassland ? A microeconomic analysis

Author

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  • Philippe Le Goffe

    (Département économie rurale et gestion - AGROCAMPUS OUEST)

  • . European Grassland Federation

    (EGF - European Grassland Federation)

Abstract

Unfavourable or no incentives at all make the farmers use insufficient grassland areas, from the society's and economic efficiency's point of view. On the one hand the CAP premium encourage to exploit more crops and less grasslands than what real profit would imply. On the other hand, the farmer who seeks to maximise his profit does not take into account the effects extemal to the market due to the lack of incentives. However the market could contribute to the provision of grasslands the society needs, because milk and meat produced by grass-feeding have specific characteristics valued by the consumer. Nevertheless, the public good characteristics of grasslands make market failures remain and public policy become necessary.

Suggested Citation

  • Philippe Le Goffe & . European Grassland Federation, 2002. "Should we promote grassland ? A microeconomic analysis," Post-Print hal-02306183, HAL.
    • Handle: RePEc:hal:journl:hal-02306183
    Note: View the original document on HAL open archive server: https://hal.science/hal-02306183
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    References listed on IDEAS

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    1. Hervé Guyomard & Louis-Pascal Mahé, 1995. "La nouvelle instrumentation de la politique agricole commune," Économie et Prévision, Programme National Persée, vol. 117(1), pages 15-29.
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    3. R. H. Coase, 2013. "The Problem of Social Cost," Journal of Law and Economics, University of Chicago Press, vol. 56(4), pages 837-877.
    4. Philippe Le Goffe, 2000. "Hedonic pricing of agriculture and forestry externalities," Post-Print hal-02364341, HAL.
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