NDLI: Are public payments for organic farming cost-effective? Combining a decision-support model with LCA

Content Provider	Springer Nature Link
Author	Zimmermann, Albert Baumgartner, Daniel Nemecek, Thomas Gaillard, Gérard
Copyright Year	2011
Abstract	The agricultural sector fulfils several functions such as the production of food energy and landscape conservation. An equilibrium between economic development and environmental protection should be found and research should aid political decision-making. In recent years, great efforts have been made to assess the environmental and economic implications of changes in both environmental and agricultural policies. Life cycle assessment (LCA) has been extended by cost functions and social parameters. The validation of suggestions for political measures can be improved by combining existing environmental and economic models. This approach is applied in this paper in order to compare an increased support for organic farming with specific environmental policy measures, focusing on the resulting impacts and socioeconomic indicators.The LCA tool Swiss Agricultural Life Cycle Assessment (SALCA) has been linked with the economic optimisation model Swiss Agricultural Sector Forecasting System (SILAS). Since the focus lies on agricultural production, the farm gate represents the system boundary of the LCA. By linking SALCA with SILAS, the classic LCA impact categories have been extended by socioeconomic indicators. A reference scenario representing the assumed development of economic conditions between 2008 and 2015 was varied by a support for organic farming and four specific policy measures (support for ecological compensation areas and a tax on energy, fertiliser and concentrates, respectively). To remain comparable, the changes in total payments were set to the same amount in all scenarios (100 million CHF).A support for organic farming would have favourable effects on several environmental and socioeconomic indicators, but the differences compared to a combination of the four specific measures are small. However, some of these single measures could reach parts of the targets more efficiently: an energy tax would stimulate the application of available energy-saving measures, and a tax on concentrates would lead to a shift from intensive animal husbandry to crop production, reducing imports of concentrates and emissions of ammonia. Overall, the predicted developments in product and factor prices combined with the assumed reductions of public payments until 2015, as represented by the reference scenario, have the greatest effect on environmental impacts.Theoretically, specific policy measures are more efficient than measures directed towards multiple goals. Especially in the case of agriculture, however, a specific measure not only has an impact on the associated target but affects all agricultural functions. The results of the model combination suggest that a support for organic farming lowers the risk of undesirable side effects on environmental and socioeconomic indicators. Before implementing more specific measures, their impacts on the different functions should be estimated. For this purpose, a combination of decision-support models with LCA may be an appropriate instrument.
Starting Page	548
Ending Page	560
Page Count	13
File Format	PDF
ISSN	09483349
Journal	The International Journal of Life Cycle Assessment
Volume Number	16
Issue Number	6
e-ISSN	16147502
Language	English
Publisher	Springer-Verlag
Publisher Date	2011-05-24
Publisher Place	Berlin, Heidelberg
Access Restriction	One Nation One Subscription (ONOS)
Subject Keyword	Decision-support model Environmental policy measures LCA Organic farming Political advisory Environment Environmental Economics
Content Type	Text
Resource Type	Article
Subject	Environmental Science

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1	Ministry of Education (GoI), Department of Higher Education	Sanctioning Authority	https://www.education.gov.in/ict-initiatives
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