The Impacts of Alternative Policy Scenarios on Multifunctionality
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This paper provides first results of the sector model approach to analyze the effects of alternative policy scenarios on the multifunctional role of Finnish agriculture. In terms of environmental non-commodity outputs we focus on nutrient runoffs, landscape diversity and biodiversity. As regards to socio-economic outputs our focus is on direct and indirect agricultural labour force. The results suggest that while partial de-coupling agricultural supports from production is not likely to result in any drastic decline of agricultural production the amount of green fallow will increase considerably. As a result, the agricultural land will become biologically richer. The agricultural labour force is likely to decrease substantially irrespective of agricultural policy.