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Markus F. Hofreither

and regulations relevant for rural areas and inhabitants. This for example holds for trade regulations on regional markets, for environmental policies, and even for social support of rural people.1 Differing consequences for farm and non-farm individuals may also be the result of macroeconomic policies influencing inflation, interest rates, employment, or exchange rates.2 At times, macro policies may have an even greater impact on rural areas than agricultural policies do. In general, unbalanced development patterns of rural regions may be either the result of

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Nature and Agriculture in the European Union

New Perspectives on Policies that Shape the European Countryside

Edited by Floor Brouwer and Jan van der Straaten

Nature and agriculture both shape the European countryside and one of the main challenges for the years to come will be to strengthen their interaction for the future development of rural areas. In this valuable and highly topical book, the authors demonstrate how economics and ecology can play a critical role in maintaining and sustaining this relationship. The book identifies the dilemmas facing European agriculture and explores their economic and ecological consequences. The authors believe a better understanding of these problems will be crucial in recognising the potential options for the future role of agriculture and nature policy and will guide the identification of suitable policy instruments.
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François Bonnieux and Pierre Rainelli

framework, there is an under-supply of public goods and an over-supply of private goods: U1 < U0, Q1 < Q0, X1 > X0. Suppose at point A1 an increase in public goods is offered to consumers. Of interest is whether such an increase in the provision of public goods would be valued more highly by consumers than by the producers. Farmers must give up X to produce more Q at a rate defined by the slope of the production possibility frontier. In terms of profit foregone, a shift from A1 to A0 is valued in units of X by: X1 – X0. The amount of X consumers who would be willing to pay

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Marian Leimbach, Alexander Popp, Hermann Lotze-Campen, Nico Bauer, Jan Philipp Dietrich and David Klein

introductory section by providing an outline of a typical IA model structure, and focusing the land-use module as the main subject of further investigation by putting it into the center. History With increasing indication of anthropogenic causation of global warming, the integrated assessment of climate change became a fast-expanding field of scientific interest and policy relevance at the end of the 1980s. The generally recognized intricate features of climate change and the emerging need for policy response have triggered substantial research activities over the past two

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Leonidas Louloudis and Nikos Beopoulos

.5 million inhabitants are part of the agricultural society and the rural areas in which they live cover about 100 000 km2. This means that 76 per cent of the Greek territory has a population density of 15 inhabitants per km2. The dramatic rates of population decrease in agricultural regions, which were recorded in the 1960s and 1970s slowed down in the 1980s and stabilized in the 1990s. In 1991 the agricultural population composed 28.2 per cent of the total population of the country, which again turned 184 Cases on the interaction between agriculture and nature down to

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Bob Crabtree

that takes into account the pressures both from interest groups and farmers. Conceptually the benefits from the ESA scheme can be depicted as a response to declining natural capital value at time t due to agricultural change (Figure 7.1). Without policy intervention the environmental value is expected to fall during the period to t1. However, the environmental value of the area can be maintained by protecting habitats and landscape. With a higher level of incentives some enhancement of the capital would take place leading to a recovery in value. At time t1 the public

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Consuelo Varela-Ortega, José Sumpsi and Maria Blanco

wetlands and loss of aquatic species. Water availability in the Mediterranean region 125 Depletion of aquifers from intensive irrigation has occurred in several regions in Spain of great environmental value. Past policies have encouraged the development of irrigation, and have been furthermore reinforced by the production-related payments, as in other countries of south Europe (Baldock and Long, 1988; Varela-Ortega and Sumpsi, 1998; Rainelli and Vermersch, 1998). Overdrafting takes place when water-mining rates exceed the rate of natural recharge, causing aquifers to

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Sudarno Sumarto and Asep Suryahadi

economic growth matters in determining the impact of growth on poverty. 6.5.1 Previous Approaches The basic model to estimate the impact of economic growth on poverty can be defined as: dP ϭ ␣ ϩ ␤y ϩ ␧, (6.1) where P refers to the level of poverty rate and dP refers to the change in poverty rate, y represents the rate of economic growth (that is y ϭ (dYրY), where Y is the level of GDP and dY is its change), ␧ is the error term, while ␣ and ␤, are parameters to be estimated. In particular, the parameter of interest is ␤ which shows the percentage point change in poverty

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Raghbendra Jha and Raghav Gaiha

their natural price but the opening up of this gap leads to an increase in population growth. Thus, the fertility rate depends upon the wage of labor. This then puts pressure on food supplies and ultimately lowers labor’s wage to the natural level. When the wage rate is below the price of labor workers are deprived and, by the same logic as above, their numbers start to fall until their wage once again equals their natural price. This is a restatement of the Malthusian logic. However, Ricardo argues that this logic assumes a constant stock of capital. Ricardo argues

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Jan Luijt and Carel P. C. M. van der Hamsvoort

land income = land income/(discount rate – growth rate land income) The discount rate is influenced by expectations with regard to the amount of the future interest, while the annual land income is influenced by the expected growth of land productivity on the one hand and the expected development of the ‘agricultural terms of trade’ on the other (the quotient of ‘prices received by farmers and prices paid by farmers’). Land productivity in agriculture has been improving constantly for decades (Dijksterhuis, 2000). Changes in the expectations of agricultural