Implications of the Tinbergen Rule for multi-target policy instruments under consideration of economies of scope
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Date
2011Type
- Working Paper
ETH Bibliography
yes
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Abstract
The Tinbergen Rule has been used to criticise multi-target policy instruments for being inefficient. The aim of this paper is to clarify the implications of the Tinbergen Rule for multi-target policy instruments, using organic farming support as a case study. Employing an analytical linear optimisation model, this paper demonstrates that there is no general contradiction between multitarget policy instruments and the Tinbergen Rule, if they are used in combination with a sufficient number of other, more targeted instruments. We show that the relation between cost-effectiveness of the instruments, related to all policy targets, is the key determinant for an economically sound choice of policy instruments. If economies of scope with respect to achieving policy targets are realised, a higher cost-effectiveness of multi-target policy is given. Several reasons are discussed why economies of scope could be realised by organic farming support. Show more
Publication status
publishedPublisher
ETH, Institute for Environmental Decisions IEDSubject
Organic agriculture; Direct payments; Economic efficiency; Cost-effectiveness; AgrienvironmentalOrganisational unit
03728 - Engel, Stefanie (ehemalig)
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ETH Bibliography
yes
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