Dieter Kirschke, Astrid Häger, Kurt Jechlitschka, Stefan Wegener
Published: 08.10.2007 〉 Jahrgang 56 (2007), Heft 7 〉 Resort: Articles
Submitted: N. A. 〉 Feedback to authors after first review: N. A. 〉 Accepted: N. A.
In this paper we analyse the impact of the EU multi-level co-financing system on regional policy-making and priority setting taking the case of the agri-environmental programme of Saxony-Anhalt. The implications of several co-financing scenarios are analysed and compared to respective lump-sum transfers using an interactive linear programming approach. The results reveal how regional choices on agri-environmental measures are influenced by the co-financing system leading to distortions. The extent of these distortions depends on the specific regional preferences and restrictions.