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Linkages between Agricultural Policies and Environmental Effects
Using the OECD Stylised Agri-environmental Policy Impact Model
OECD Publishing , Publication date:  07 Dec 2010
Pages: 176 , Language: English
Version: Print (Paperback) + PDF
ISBN: 9789264095694 , OECD Code: 512010061P1
Price:   €50 | $70 | £45 | ¥6500 | MXN900 , Standard shipping included!
Availability: Available (Print on Demand)
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Other languages:  French (Available (Print on Demand))
Other Versions:  E-book - PDF Format
Multilingual summaries:  Japanese, French, English

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Improving the environmental performance of agriculture is a high priority for OECD countries. But measuring and evaluating the impact of agri-environmental policies on the environment can be challenging, as it requires linking economic and biophysical models in country-specific  contexts. 

The OECD has developed the Stylised Agri-environmental Policy Impact Model (SAPIM), which can be adapted and applied by researchers and policy makers to better understand the impact of policies on the agri-environment conditions in their countries. 

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. 

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.  

Green growth policies can stimulate economic growth while preventing environmental degradation, biodiversity loss and unsustainable natural resource use. The results from this publication contribute to the Green Growth Strategy being developed by the OECD as a practical policy package for governments to harness the potential of greener growth.

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
-Summary of the US case study
Chapter 7. Japan: Optimal land-use allocation and nitrogen application
-Policy context and analytical framework
-Theoretical framework
-Empirical framework
-Policy simulations and 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

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