Premium
Agri‐environmental Instruments for an Integrated Rural Policy: An Economic Analysis
Author(s) -
Feinerman Eli,
Komen Marinus H.C.
Publication year - 2003
Publication title -
journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.157
H-Index - 61
eISSN - 1477-9552
pISSN - 0021-857X
DOI - 10.1111/j.1477-9552.2003.tb00045.x
Subject(s) - rural area , business , direct payments , recreation , agriculture , government (linguistics) , production (economics) , agricultural policy , payment , vitality , agricultural productivity , common agricultural policy , public policy , agricultural economics , economic growth , natural resource economics , environmental planning , economics , economic policy , geography , finance , european union , political science , linguistics , philosophy , theology , archaeology , law , macroeconomics
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 rural policy development initiatives in the EU.