The Economics of UK Agri-Environmental Policy: Present and Future Developments

Abstract

UK agricultural policy is evolving with the development of agri-environmental legislation which aims to protect and improve the rural environment.. The growing importance of agri-environmental policy is further emphasised by its role in the 1992 MacSharry Reform of the CAP and its position in the 1995 Uruguay Round of the GATT. This paper provides a broad overview of the economics of agri-environmental policy in the UK. The reasons why agri-environmental policy exists, its form and the potential implications of the recent reforms are considered. It is suggested that the future development of policy in this area will need to take more seriously the conditions required by the GATT.