Environmental Engineering Reference
In-Depth Information
PICA Step One: Classification of the Policy Option
Using all available information on the concrete form and content of the policy
option provided by the policy maker the PICA expert team categorises this element
of the EU Nitrate Directive - according to the matrix of policy types (see Table 3.1 )
- as a regulatory type of policy having effects on markets . As described above, it
demands from the Member States that action programmes are to be implemented
that shall consist, among other things, of clearly defined mandatory measures
determined in Annex III. Effectively, only the national regulations determine the
precise limits of restrictions in time and space. Further, it is assumed that no
compensations are paid covering the costs induced by these restrictions. 13 These
uncompensated restrictions have an impact on the production costs of farmers
(e.g., because yields decrease due to restrictions in fertiliser use) and, thus, on their
position at the market. More precisely, farmers might be forced to offer their products
at a higher price resulting in a decrease in demand for those products or they
might keep the price and accept reduced profits.
PICA Step Two: Crucial Institutional Aspects Related
to the Policy Option
According to the identification of the policy type in the previous step, in PICA Step 2,
only those CIA related to regulatory policy instruments intervening in markets have
to be considered. Within the SEAMLESS project, an extensive literature review has
been carried out to identify CIA that are typically linked with respective policy
types (see Schleyer et al. 2007a : Appendix 2). Based on this compiled 'library of
crucial institutional aspects', those CIA are extracted that potentially hamper or
foster the effective implementation of policies of the type 'regulatory on market',
thus, accruing also to the selected core element of the EU Nitrate Directive, in
particular, to the implementation of restrictions in fertiliser use. During the applica-
tion of PICA, relevant national and regional stakeholders and scientific experts are
consulted by the PICA expert team discussing the relevance of every identified CIA
for the policy option under scrutiny. Here, some of the CIA extracted from the
initial literature review might be regarded as relevant for a policy type in general,
but not be considered as crucial for the specific policy option to be assessed. Thus,
the PICA expert team can decide to skip some CIA at this stage. In turn, additional
CIA that have not yet been covered by the literature reviewed may be included in
the assessment of the policy option under scrutiny and may also be added to the library
13 However, national laws to implement the EU Nitrate Directive may be complemented with various
forms of compensation schemes that ease the burden for some stakeholders in general, or in
selected areas, for limitations in nitrate application that are beyond what is legally required.
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