Linkages between Agricultural Policies and Environmental Effects : Using the OECD Stylised Agri-environmental Policy Impact Model OECD Green Growth Strategy OECD | 16 Nov 2010 | ISBN: 9264095700 | 176 pages | PDF | 2 MB This report notes that, overall, the diversity of conditions across sectors and countries makes it difficult to generalise the impact of agri-environmental policies beyond the situations that are modeled. Nevertheless, some wider policy messages emerge. Drawing on the four case studies examined, this report recommends that; polluting activites that are not regulated should be included in policy design; the existing overall policy environment needs to be taken into account in evaluating agri-environmental policies; and environmental co-benefits and trade-offs need to be recognised.
This report applies the model to representative farms in Finland, Japan, Switzerland and the United States. These countries include a wide range of objectives, policy measures and agri-environmental conditions. The results highlight that when positive or negative environmental externalities are not taken into account by farmers then the production choices by farmers will reflect private costs and benefits. Policies can potentially raise social welfare by taking account of those externalities. Table of Contents Executive Summary Chapter 1 Introduction Chapter 2 General description of the SAPIM framework Agriculture-environment interactions: Model choices General framework for agri-environmental externalities in a heterogeneous landscape Chapter 3 Environmental effects of agricultural policies: Literature review Soil erosion Greenhouse gas emissions Pesticides Water quality (nutrient pollution) Livestock manure related emissions and policies Biodiversity and wildlife habitats Broad-ranging agricultural policies and multiple environmental effects Farm-level modelling approaches under heterogeneous conditions Chapter 4 Finland: Crop production and entry/exit options with forestry Theoretical framework Empirical applications using Finnish data Policy simulations and results Summary of the Finnish case study Chapter 5 Switzerland: The environmental effects of dairy production Theoretical framework Empirical application on the basis of Swiss data Policy simulations and results Summary of the Swiss case study Chapter 6 United States: The environmental effects of crop production and conservation auctions Theoretical framework Empirical application on the basis of the US Corn Belt Policy simulations Results Summary of the US case study Chapter 7 Japan: Optimal l and-use allocation and nitrogen application Policy context and analytical framework Theoretical framework Empirical framework Policy simulations and results Results Summary of the Japanese case study Chapter 8 Sensitivity analysis Sensitivity analysis of model parameters Sensitivity analysis with respect to key assumptions Sensitivity analysis of SAPIM case studies Chapter 9 Comparative analysis of results for all case studies Comparing environmental and economic impacts Comparative analysis results Chapter 10 Conclusions Annex A. The Finnish case study Annex B. The Swiss case study: Background data Annex C. The Japanese case study: Empirical specification Bibliography
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