PROVISION OF AGRICULTURAL PUBLIC GOODS IN LESS FAVOURED AREAS

Abstract

The article examines the significance of areas with natural constraints in creating agricultural public goods, based on a scientific literature analysis. It discusses key natural limitations, including mountainous terrain, poor soil quality, extreme climate events, and water scarcity, which restrict agricultural productivity. However, these conditions contribute to the provision of public goods such as landscape preservation, biodiversity conservation, and ecosystem stability. Through an analysis of scientific articles, EU policy documents, and international organization sources, the study finds that less intensive farming in these areas helps maintain ecological balance, reduces negative environmental impacts, and supports the creation of vital public goods. The findings highlight the importance of these territories from both natural and social perspectives, emphasizing their role in sustaining rural communities. The article underscores the critical role of the EU Common Agricultural Policy (CAP) in promoting sustainable farming practices and preventing land abandonment. These areas, supported by traditional farming, emerge as key contributors to sustainable development.