@article{Lehtonen:44150,
      recid = {44150},
      author = {Lehtonen, Heikki},
      title = {Resolving the conflict between environmental damage and  agricultural viability on less favoured areas},
      address = {2008},
      number = {725-2016-49403},
      pages = {9},
      year = {2008},
      abstract = {Production linked supports are paid for
agriculture in  less favoured areas (LFA) in Finland in
order to maintain  agricultural production and farms.
The CAP reform increased  the importance of LFA
payments and other payments which are  still partly
coupled to production. We evaluate if any  significant
environmental damage can be avoided without  risking
maintenance agricultural production in less  favoured
areas. We also evaluate the relative effectiveness  of
alternative policy measures to decrease nutrient  surplus,
promote biodiversity, and maintain production  and
farm income. The policy options evaluated are  full
decoupling, fertiliser tax, both combined and  explicit
payments for reduced nutrient surpluses. The  impacts of
the options are compared to the baseline  assuming milk
quota abolition and continuation of  production linked
CAP beef premia.
Sector model results  suggest that decoupling of
certain degree would improve the  effectiveness of
targeted agri-environmental support  measures, and in
some cases considerable reduction in  nutrient surplus is
possible with relatively minor  reduction in agricultural
production and farm income.  Fertiliser tax appears to
be efficient especially when  combined to decoupling
while explicit payments on nutrient  surpluses as well as
full decoupling have some negative  side-effects.},
      url = {http://ageconsearch.umn.edu/record/44150},
      doi = {https://doi.org/10.22004/ag.econ.44150},
}