Agri-environmental Instruments for an Integrated Rural Policy: An Economic Analysis

M.H.C. Komen, E. Feinerman

Research output: Contribution to journalArticleAcademicpeer-review

10 Citations (Scopus)

Abstract

The new Rural Development Regulation of the EU reflects the shift of attention within rural areas from agricultural production towards rural development and embraces both farmers and non-farm residents. While agricultural production is required to comply with environmental standards, rural areas also have to fulfil the growing demand for landscape, outdoor recreation and wildlife conservation. This paper develops a model of a rural area where farmers and non-farm residents live together. A central government uses a combination of two-policy instruments - direct compensation payments and public services - aimed at encouraging farmers to adopt environmentally beneficial practices and at the same time to increase the provision of countryside amenities and the sustained vitality of the rural area. The optimal mix of the policy instruments is evaluated under various governmental objectives. The analysis suggests that a combination of direct payments to farmers with the supply of local public services is a promising tool for policy development initiatives in the EU.
Original languageEnglish
Pages (from-to)1-20
Number of pages20
JournalJournal of Agricultural Economics
Volume54
Issue number1
DOIs
Publication statusPublished - 2003

Keywords

  • tourism
  • perspective
  • prices
  • level
  • life
  • cap

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