Relevance of OECD Agri-Environmental Measures for Remuneration of Positive Externalities / Payments for Environmental Services
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This paper reviews the development of agri-environmental policies in the European Union and other OECD countries, both in historical terms and in terms of the characteristics and challenges of different approaches. The process of reforming the EU’s Common Agricultural Policy, and in particular the likely increased emphasis on payment for public goods (positive externalities and environmental services), is also reviewed. Key issues from the OECD experience are highlighted, including: the problem of indentifying the level of provision of public goods and the resulting focus on payment of prescriptions not outputs; the issue of cost-effectiveness of schemes and the balance between targeted schemes and schemes based on land-use systems; and the need for other policy measures, including research and training, to provide a base and supportive framework on which RPE/PES schemes can be built. The experience with private-sector or market-led solutions is also reviewed. Finally, some key points for the development of schemes elsewhere are identified.