Modelling Agricultural Abandonment: The Agri-Environmental Regulation Revisited

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The article analyzes some regulatory mechanisms preventing agricultural abandonment by the introduction of some particular changes in the marginal benefits of farming. Two farming methods are considered: intensive and extensive. When the authors analyze the policy recovering the abandoned land with intensive farms they conclude that there exists a decoupled policy that maintains constant the agricultural revenue without any regulatory cost. When the authors analyze the policy recovering the abandoned land with extensive farms they conclude that recovering the abandoned land necessary requires the implementation of partial decoupled policies. The completely decoupled policies in the model require the substitution of intensive with extensive farms, and so the increase of the regulatory funds.

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