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Agri-Environment Schemes, Ecosystem Services & Some Administrative Realities

Agri-Environment Schemes, Ecosystem Services & Some Administrative Realities. Andrew Moxey Presentation on 10/12/2010 at ECO-DELIVERY seminar Stirling University. Payments for Ecosystem Services?. Bandwagons? (Mainly) Familiar problems and remedies

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Agri-Environment Schemes, Ecosystem Services & Some Administrative Realities

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  1. Agri-Environment Schemes,Ecosystem Services &Some Administrative Realities Andrew Moxey Presentation on 10/12/2010 at ECO-DELIVERY seminar Stirling University

  2. Payments for Ecosystem Services? • Bandwagons? • (Mainly) Familiar problems and remedies e.g. excludability, diffuseness, contiguity, bundling... user fees, cap&trade, coasian bargaining... • Publicly-funded land management dominates

  3. PES funding source

  4. Economics vs. Public Administration • Efficiency under heterogeneity requires flexibility • Public accountability for expenditure • Distribution of costs & funds (& benefits?) • Observed institutional behaviour and processes

  5. Fungible funds? • “Free from Brussels” vs. Domestic Resources • Co-financing, voluntary modulation • Pressure on domestic exchequers • UK rebate • (Scottish) Programme vs. Running Costs

  6. Funding composition (€m/year)

  7. Running costs • SFP & LFASS less than 1p in the pound • SBCS (National Envelope) about 3p in the pound • AES up to 14p in the pound • Scale effects • Administrative complexity & monitoring

  8. Spending within & between Pillars (€m/year)

  9. Admin costs across Pillars (€m/year)

  10. Administrative processes • “Entitlements” vs. Competitive bidding • Tick boxes vs. Active application • SFP, LFASS, LMOs vs. RPs • Applicants’ & administrators experience • Managing expectations (feedback/signaling)

  11. Monitoring • Flexibility vs. Standardisation • “Efficiency savings” - combined inspections • Inspection rate, targeting & competency • Proportionate penalties? • Proportionate monitoring costs?

  12. Payment rates • Evidence base? Scientific uncertainty • Spatial and/or temporal variation • Stakeholder involvement/lobbying • External scrutiny? • Auctions?

  13. Misc. Admin Issues • Baselining - of what, by whom & who pays? • Public sector monitoring vs. advisory role? • Self-monitoring? • Process compliance vs. Outcome achievement? • Costs incurred & income foregone?

  14. Governance • National vs. Regional vs. Local • Centralisation vs. Devolution; Ring-Fencing • Flexibility & local priorities or post-code lotteries? • Local competency/diligence/accountability • RPACs, LGMGs, DMGs (budget responsibility?)

  15. Some random other thoughts • Supply-chain analogies? Fungible outcomes? • Payment by results? Time-lags & Risks • Private funding? Bonds, carbon markets etc. • Water customers - catchment management • WTO interpretation, CAP reform, Climate Change

  16. Some conclusions • Irreconcilable tensions? • Administrative concerns constrain policies • Simpler processes and monitoring needed • Conditionality e.g. Pillar I, planning • Integration of environmental policy

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