Redesigning agricultural payments for economic and environmental sustainability
Larsson, Cecilia LU
(2025)
- Abstract
- Agriculture is fundamental to food security and rural livelihoods, but the sector faces persistent sustainability challenges. Modern production systems have increased yields but also contributed to soil degradation, biodiversity loss, and greenhouse gas emissions. This thesis examines how agricultural policy instruments can be designed to improve the economic efficiency and environmental effectiveness of the sector, with a focus on the European Union’s Common Agricultural Policy (CAP) and its implementation in Sweden.
Using an interdisciplinary modelling framework combining agent-based modelling (ABM) and life cycle assessment (LCA), four studies evaluate policy instruments aimed at biomass energy supply, climate change mitigation, and... (More) - Agriculture is fundamental to food security and rural livelihoods, but the sector faces persistent sustainability challenges. Modern production systems have increased yields but also contributed to soil degradation, biodiversity loss, and greenhouse gas emissions. This thesis examines how agricultural policy instruments can be designed to improve the economic efficiency and environmental effectiveness of the sector, with a focus on the European Union’s Common Agricultural Policy (CAP) and its implementation in Sweden.
Using an interdisciplinary modelling framework combining agent-based modelling (ABM) and life cycle assessment (LCA), four studies evaluate policy instruments aimed at biomass energy supply, climate change mitigation, and soil health. The analyses account for spatial heterogeneity, market dynamics, and structural change to assess their influence on policy outcomes. Results show that: (i) coarse spatial targeting reduces cost-effectiveness, as variation in land, soil, farm structure, and market conditions strongly shapes outcomes; (ii) failing to account for jointness in the provision of public goods, climate change mitigation and food security, leads to underfinancing and soil health policy; (iii) instruments unresponsive to market dynamics lose effectiveness when prices change; (iv) policy-induced structural changes can cause indirect environmental effects, including international leakage; and (v) integration of environmental objectives into the CAP remains limited, with some eco-schemes delivering weak environmental gains.
The thesis demonstrates the benefits of integrating economics and environmental science in policy analysis. Because of the overlap and interconnectedness between economic and environmental dimensions, agriculture cannot be economically sustainable unless it is also environmentally so. The findings suggest that advancing agricultural sustainability requires more precise spatial targeting, recognition of ecosystem service interlinkages, mechanisms that adapt to market conditions, and systematic consideration of structural change. Integrating environmental objectives directly into the CAP’s incentive structure would promote the sustainable development of agriculture and the food system. (Less) - Abstract (Swedish)
- Jordbruket är grundläggande för livsmedelssäkerhet och försörjning på landsbygden, men sektorn står inför varaktiga hållbarhetsutmaningar. Moderna produktionssystem har ökat avkastningen men också bidragit till markförstöring, förlust av biologisk mångfald och utsläpp av växthusgaser. Denna avhandling undersöker hur jordbrukspolitiska styrmedel kan utformas för att förbättra både den ekonomiska effektiviteten och den miljömässiga effektiviteten inom sektorn, med särskilt fokus på EU:s gemensamma jordbrukspolitik (CAP) och dess tillämpning i Sverige.
Med hjälp av ett tvärvetenskapligt modelleringsramverk som kombinerar agentbaserad modellering (ABM) och livscykelanalys (LCA) utvärderar fyra studier styrmedel inriktade på... (More) - Jordbruket är grundläggande för livsmedelssäkerhet och försörjning på landsbygden, men sektorn står inför varaktiga hållbarhetsutmaningar. Moderna produktionssystem har ökat avkastningen men också bidragit till markförstöring, förlust av biologisk mångfald och utsläpp av växthusgaser. Denna avhandling undersöker hur jordbrukspolitiska styrmedel kan utformas för att förbättra både den ekonomiska effektiviteten och den miljömässiga effektiviteten inom sektorn, med särskilt fokus på EU:s gemensamma jordbrukspolitik (CAP) och dess tillämpning i Sverige.
Med hjälp av ett tvärvetenskapligt modelleringsramverk som kombinerar agentbaserad modellering (ABM) och livscykelanalys (LCA) utvärderar fyra studier styrmedel inriktade på bioenergiförsörjning, klimatanpassning och markhälsa. Analyserna beaktar rumslig heterogenitet, marknadsdynamik och strukturell förändring för att bedöma styrmedlens inverkan på policyutfall. Resultaten visar att: (i) grov rumslig styrning minskar kostnadseffektiviteten, eftersom variation i mark, jordarter, gårdsstruktur och marknadsförhållanden i hög grad påverkar utfallet; (ii) bristande hänsyn till samproduktion av kollektiva nyttigheter, klimatbegränsningar och livsmedelstrygghet, leder till underfinansiering av styrmedel för markhälsa; (iii) styrmedel som inte är responsiva mot marknadsdynamik förlorar i effektivitet när priser förändras; (iv) policyinducerade strukturella förändringar kan ge upphov till indirekta miljöeffekter, inklusive internationell läckage; och (v) integrationen av miljömål i CAP är fortsatt begränsad, där vissa miljöstöd ger svaga miljövinster.
Avhandlingen visar på nyttan av att integrera nationalekonomi och miljövetenskap i policystudier. På grund av kopplingen mellan ekonomiska och miljömässiga dimensioner kan jordbruket inte vara ekonomiskt hållbart utan att också vara miljömässigt hållbart. Resultaten antyder att en mer hållbar utveckling av jordbruket kräver mer precis rumslig styrning, hänsyn till kopplingar mellan ekosystemtjänster, mekanismer för anpassning till marknadsförhållanden samt systematiskt beaktande av strukturella effekter. En direkt integrering av miljömål i CAP:s incitamentsstruktur skulle främja hållbar utveckling av jordbruket och livsmedelssystemet. (Less)
Please use this url to cite or link to this publication:
https://lup.lub.lu.se/record/f6d2080c-ac06-44dd-9260-210af0eb4213
- author
- Larsson, Cecilia
LU
- supervisor
- opponent
-
- Professor Wätzold, Frank, Brandenburg University of Technology Cottbus-Senftenberg, Germany.
- organization
- alternative title
- Omformning av jordbruksstöd för ekonomisk och miljömässig hållbarhet
- publishing date
- 2025
- type
- Thesis
- publication status
- published
- subject
- keywords
- Jordbrukspolitik, Kollektiva nyttigheter, Kostnadseffektivitet, Rumslig heterogenitet, Agent-baserad modellering, EU:s gemensamma jordbrukspolitik, Markkolsinlagring, Klimatförändringar, Strukturomvandling, Agri-environmental policy, Public goods, Cost-effectiveness, Spatial heterogeneity, Agent-based modelling, Common Agricultural Policy (CAP), Soil carbon sequestration, Climate change mitigation, Structural change
- pages
- 72 pages
- publisher
- Lunds universitet
- defense location
- Lundmarksalen, Astronomihuset
- defense date
- 2025-10-02 13:00:00
- ISBN
- 978-91-8104-623-6
- 978-91-8104-622-9
- project
- Bioenergy policy for agriculture - farm biomass activities, food security, and conflicts with environmental goal
- language
- English
- LU publication?
- yes
- id
- f6d2080c-ac06-44dd-9260-210af0eb4213
- date added to LUP
- 2025-08-29 10:46:00
- date last changed
- 2025-09-08 16:21:11
@phdthesis{f6d2080c-ac06-44dd-9260-210af0eb4213,
abstract = {{Agriculture is fundamental to food security and rural livelihoods, but the sector faces persistent sustainability challenges. Modern production systems have increased yields but also contributed to soil degradation, biodiversity loss, and greenhouse gas emissions. This thesis examines how agricultural policy instruments can be designed to improve the economic efficiency and environmental effectiveness of the sector, with a focus on the European Union’s Common Agricultural Policy (CAP) and its implementation in Sweden.<br/>Using an interdisciplinary modelling framework combining agent-based modelling (ABM) and life cycle assessment (LCA), four studies evaluate policy instruments aimed at biomass energy supply, climate change mitigation, and soil health. The analyses account for spatial heterogeneity, market dynamics, and structural change to assess their influence on policy outcomes. Results show that: (i) coarse spatial targeting reduces cost-effectiveness, as variation in land, soil, farm structure, and market conditions strongly shapes outcomes; (ii) failing to account for jointness in the provision of public goods, climate change mitigation and food security, leads to underfinancing and soil health policy; (iii) instruments unresponsive to market dynamics lose effectiveness when prices change; (iv) policy-induced structural changes can cause indirect environmental effects, including international leakage; and (v) integration of environmental objectives into the CAP remains limited, with some eco-schemes delivering weak environmental gains. <br/>The thesis demonstrates the benefits of integrating economics and environmental science in policy analysis. Because of the overlap and interconnectedness between economic and environmental dimensions, agriculture cannot be economically sustainable unless it is also environmentally so. The findings suggest that advancing agricultural sustainability requires more precise spatial targeting, recognition of ecosystem service interlinkages, mechanisms that adapt to market conditions, and systematic consideration of structural change. Integrating environmental objectives directly into the CAP’s incentive structure would promote the sustainable development of agriculture and the food system.}},
author = {{Larsson, Cecilia}},
isbn = {{978-91-8104-623-6}},
keywords = {{Jordbrukspolitik; Kollektiva nyttigheter; Kostnadseffektivitet; Rumslig heterogenitet; Agent-baserad modellering; EU:s gemensamma jordbrukspolitik; Markkolsinlagring; Klimatförändringar; Strukturomvandling; Agri-environmental policy; Public goods; Cost-effectiveness; Spatial heterogeneity; Agent-based modelling; Common Agricultural Policy (CAP); Soil carbon sequestration; Climate change mitigation; Structural change}},
language = {{eng}},
publisher = {{Lunds universitet}},
school = {{Lund University}},
title = {{Redesigning agricultural payments for economic and environmental sustainability}},
url = {{https://lup.lub.lu.se/search/files/226554292/Avhandling_Cecilia_Larsson_LUCRIS.pdf}},
year = {{2025}},
}