Agriculture policy Flashcards
(8 cards)
What are objectives in agriculture policy?
Effectiveness
Cost efficiency
Sustainability and dynamic efficiency
What are implementation obstacles in agricultural policy?
Assymetric information and market conditions
Uncertainty
Ecological complexity and spatial interactions
Why is effectiveness a relevant objective in agriculture policy? What policy tool can be utilized?
Agriculture is responsible for significant environmental impacts necessitating policies with clear and targeted outcomes.
Result-based incentives: Payments are tied to measurable outcomes, such as improving water quality or reducing emissions, ensuring effectiveness.
Why is cost efficiency a relevant objective in agriculture policy? What policy tool can be utilized?
Public funds allocated to agricultural transformation must be used efficiently, delivering maximum benefits at the lowest cost.
Given the large scale of agricultural subsidies under programs like the EU CAP, cost efficiency ensures the financial feasibility of these policies.
Why is sustainability and dynamic efficiency a relevant objective in agriculture policy? What policy tool can be utilized?
Policy necessitates long-term environmental benefits, dynamic efficiency ensures that policies encourage continuous innovation, such as adopting new technologies. Instrument: Result based incentives
Why is asymmetric information and market conditions a potential obstacle in agriculture policy? Describe an instrument to address it.
Policymakers often lack sufficient knowledge of local farming conditions due to heterogeneity challenge in agricultural sector (e.g., natural: variations in soil, climate or structural: differences in how agriculture is organized across regions mean policies must be tailored to local contexts) making it hard to design effective uniform policies.
Policy options: context specific, result based incentives
Why is uncertainty a potential obstacle in agriculture policy? Describe an instrument to address it.
Multifunctionality inherently involves uncertainty due to complex and unpredictable trade-offs between ecosystem services. Policiy mixes and spatial targeting are designed to navigate these uncertainties by diversifying approaches and focusing efforts.
Why is uncertainty a potential obstacle in agriculture policy? Describe an instrument to address it.
Multifunctionality inherently involves multiple interconnected ecosystem services. Policiy mixes and spatial targeting are designed to navigate these complexities by diversifying approaches and focusing efforts.
