Description:
The polluter pays principle in agriculture Agricultural pollution and contamination of surface and underground water by pesticides and nitrates has led some countries to question the way in which the polluter pays principle (PPP) can be applied to agriculture. This article deals with experiments undertaken to date in OECD countries. With the exception of the Austrian tax on nitrates, the rates used remain too low to represent an incentive to alternative production methods. There are several reasons for this including the danger of reducing competition in agriculture for one country by fixing a tax which farmers from another State would not accept. In the long run, economic instruments (taxes, charges and subsidies) at EC level will have to be harmonised in order to reach an higher level of equity.