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Distortions in a multi-level co-financing system: the case of the agri-environmental programme of Saxony-Anhalt

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.
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ABSTRACT

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.
CONTACT AUTHOR
PROF. DR. DR. H.C. DIETER KIRSCHKE
Humboldt-Universität zu Berlin
Landwirtschaftlich-Gärtnerische Fakultät,
Institut für Wirtschafts- und Sozialwissenschaften des Landbaus
Sitz: Philippstr. 13, Haus 12A
Unter den Linden 6, 10099 Berlin
Tel.: 030-20 93 64 28, Fax: 030-20 93 63 01
E-Mail: dieter.kirschke@agrar.hu-berlin.de
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