Holm-Muller, Karin; Witzke, Heinz Peter - In: German Journal of Agricultural Economics 51 (2002) 5
Both WTO and the EU use a “Rule of additional costs†(RAC) to restrict payments for ecological services in agriculture in order to prevent trade distortions. We assess this rule in the light of modern economic theory. It is shown that the RAC is efficient, if conventional agriculture...