title: The role of multi-target policy instruments in agri-environmental policy mixes.
abstract: The Tinbergen Rule has been used to criticise multi-target policy instruments for being inefficient. The aim of this paper is to clarify the role of multi-target policy instruments using the case of agri-environmental policy. Employing an analytical linear optimisation model, this paper demonstrates that there is no general contradiction between multi-target policy instruments and the Tinbergen Rule, if multi-target policy instruments are embedded in a policy-mix with a sufficient number of targeted instruments. We show that the relation between cost-effectiveness of the instruments, related to all policy targets, is the key determinant for an economically sound choice of policy instruments. If economies of scope with respect to achieving policy targets are realised, a higher cost-effectiveness of multi-target policy instruments can be achieved. Using the example of organic farming support policy, we discuss several reasons why economies of scope could be realised by multi-target agri-environmental policy instruments.
authors.affiliation: Department of Socioeconomics, Research Institute of Organic Farming (FiBL), Ackerstrasse, 5070 Frick, Switzerland. Electronic address: christian.schader@fibl.org.
authors.forename: Christian
authors.initials: C
authors.lastname: Schader
authors.affiliation: Aberystwyth University, Wales Institute of Rural Sciences, SY23 3AL, United Kingdom. Electronic address: nic.l@organicresearchcentre.com.
authors.forename: Nicholas
authors.initials: N
authors.lastname: Lampkin
authors.affiliation: Department of Socioeconomics, Research Institute of Organic Farming (FiBL), Ackerstrasse, 5070 Frick, Switzerland; Institute for Environmental Decisions IED, Swiss Federal Institute of Technology Zurich (ETHZ), Universitätsstrasse 22, 8092 Zürich, Switzerland. Electronic address: adrian.mueller@fibl.org.
authors.forename: Adrian
authors.initials: A
authors.lastname: Muller
authors.affiliation: Department of Socioeconomics, Research Institute of Organic Farming (FiBL), Ackerstrasse, 5070 Frick, Switzerland. Electronic address: matthias.stolze@fibl.org.
authors.forename: Matthias
authors.initials: M
authors.lastname: Stolze
mesh_terms: D003362:Cost-Benefit Analysis; D058735:Environmental Policy; D008962:Models, Theoretical; D058871:Organic Agriculture / Q000191:economics*
keywords: Agri-environmental policy; Cost-effectiveness; Direct payments; Economies of scope; Organic farming; Policy targets; Tinbergen Rule