Abstract

Cross-compliance has proven its effectiveness, as can be shown by looking at the Swiss experience with cross-compliance since 1999. Besides describing the existing cross-compliance practices in Switzerland, the paper shows different perspectives on the efficiency and fairness of cross-compliance. It concludes that transaction cost advantages justify cross-compliance only in few cases. Usually, it will be more efficient to decouple social and environmental policy. The strong support for cross-compliance by the Swiss population is explained by a perceived unfairness in the distribution of property rights between farmers and society. If property rights would be redistributed, there probably would be no more need for cross-compliance