Agri‐environmental Policies to Meet Consumer Preferences in Japan: An Economic‐Biophysical Model Approach
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Promoting environmentally friendly farming products is crucial to meeting consumer demand. Although
governments implement policy measures to improve the environmental performance of the agriculture sector, their
impacts are difficult to assess. This study analyses the performance of agri‐environmental policies in Japan, by using
the OECD’s policy impact model and reference level framework. In particular, it identifies the environmental
impacts of three simulated agri‐environmental policies based on farms’ characteristics. The results suggest that a
policy mix of regulation and an incentive payment would reduce environmental impacts, suggesting that targeted
approaches could improve the cost‐effectiveness of agri‐environmental policies.