Using LCA data for agri-environmental policy analysis at sector level

Summary

In times of limited agricultural budgets, the cost-effectiveness of the policies becomes a major decision criterion for policy reforms. For comprehensively assessing the effects of an agrienvironmental policy environmental data has to be scaled up to sector level, taking into account uptake rates and transaction costs of the policies. This paper discusses the general suitability of LCA data to be upscaled and combined with economic sector models. We present an approach that is based on the representative farm-group model FARMIS and the Swiss Agricultural Life Cycle Assessments (SALCA).
Exemplary results of the model for energy use are shown and most prominent issues in the context of this upscaling process are discussed. The paper argues that uptake-effect functions will not necessarily be linear. Furthermore, the combination of normative and positive datasets causes inconsistencies which need to be minimised. Finally, we argue differences between the life-cycle view and the economist’s perspective lead to difficulties in the interpretation of the results. Nevertheless, this approach may deliver plausible results and can supplement ecological site-specific studies in the evaluation of agri-environmental policies.