The new eco-schemes: Navigating a narrow fairway

Publikation: Bidrag til tidsskriftTidsskriftartikelForskningfagfællebedømt

Dokumenter

This article highlights some key challenges and trade-offs with which national policy designers have to contend in devising national eco-schemes for agriculture. We show that policy designers operate in a narrow design space which is constrained by various political and legal requirements. One key challenge is to design a reward system that allows the uptake of eco-schemes by farmers to be aligned with a given budget. We present four broad implementation models for eco-schemes and discuss their merits and shortcomings in light of stipulated requirements. These are the ‘greening model’, the ‘modified greening model’, the ‘eco-points model’ and the ‘AECS model’ in the style of the agri-environmental and climate schemes of CAP Pillar 2. We conclude that the eco-points model is likely to be the most suitable. By stipulating that individual farmers must reach a certain minimum number of points per hectare (eligibility threshold), but are not entitled to payments for points that exceed a certain upper limit per hectare (cut-off), it allows demand from farmers for inclusion in a scheme to be steered such that aggregate uptake coincides with the budget; thereby reducing the risk of over- or under-subscription while maintaining flexibility to cater for heterogeneity in site conditions.

OriginalsprogEngelsk
TidsskriftEuroChoices
Vol/bind21
Udgave nummer2
Sider (fra-til)4-10
Antal sider7
ISSN1478-0917
DOI
StatusUdgivet - 2022

Bibliografisk note

Funding Information:
This research was funded by the European Commission via the EFFECT project (Environmental public goods From Farming through Effective Contract Targeting) under grant agreement No. 817903. We thank the anonymous reviewers and the Editor for their constructive and helpful comments to improve the manuscript.

Publisher Copyright:
© 2022 Agricultural Economics Society and European Association of Agricultural Economists.

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