EFFECTIVENESS OF CROSS-COMPLIANCE UNDER ASYMMETRIC INFORMATION AND DIFFERENTIATED COMPLIANCE CONSTRAINTS

The effects of cross-compliance depend on the strategies of participation/compliance of farmers, as well as on the ability of public administration to design appropriate policy mechanisms. The objective of this paper is to present a framework for the analysis of cross-compliance under asymmetric information with the option of differentiating commitments across farmers. The methodology is applied to a case study represented by the province of Bologna (Italy). The results show that, in the present conditions of control and sanctions, only a small share of farms is interested in complying with cross-compliance. The profitability of the choice of compliance/non-compliance depends mainly on the amount of single farm payment entitlements compared with the total land. The differentiation of restrictions across farmers, under relevant budget constraints for controls, appears a key strategic components in order to ensure the effectiveness of cross-compliance.


Subject(s):
Issue Date:
2008
Publication Type:
Conference Paper/ Presentation
PURL Identifier:
http://purl.umn.edu/44151
Total Pages:
7




 Record created 2017-04-01, last modified 2017-08-25

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